Questions from Financial Accounting

Q: Pizza Corporation acquired 80 percent ownership of Slice Products Company on January

Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $160,000. On that date, the fair value of the non controlling interest was $40,000, and Slice reported...

Q: Pawn Corporation acquired 70 percent of Shop Corporation’s voting stock on January

Pawn Corporation acquired 70 percent of Shop Corporation’s voting stock on January 1, 20X2, for $416,500. The fair value of the non controlling interest was $178,500 at the date of acquisition. Shop r...

Q: In preparing the consolidation worksheet for Pencil Corporation and its 60 percent

In preparing the consolidation worksheet for Pencil Corporation and its 60 percent-owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil’s boo...

Q: Peace Corporation acquired 75 percent of the ownership of Symbol Company on

Peace Corporation acquired 75 percent of the ownership of Symbol Company on January 1, 20X1. The fair value of the non controlling interest at acquisition was equal to its proportionate share of the f...

Q: Plug Products owns 80 percent of the stock of Spark Filter Company

Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the non controlling interest was equa...

Q: On January 1, 20X1, Pesto Corporation purchased 90 percent of

On January 1, 20X1, Pesto Corporation purchased 90 percent of Sauce Corporation’s common stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 per...

Q: Pirate Company purchased 60 percent ownership of Ship Corporation on January 1

Pirate Company purchased 60 percent ownership of Ship Corporation on January 1, 20X1, for $82,800. On that date, the non controlling interest had a fair value of $55,200 and Ship reported common stock...

Q: Pepper Enterprises owns 95 percent of Salt Corporation. On January 1

Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt issued $200,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and July 1....

Q: Plaza Corporation purchased 70 percent of Square Company’s voting common stock on

Plaza Corporation purchased 70 percent of Square Company’s voting common stock on January 1, 20X5, for $291,200. On that date, the non controlling interest had a fair value of $124,8...

Q: Phone Corporation owns 80 percent of Smart Company’s stock. At the

Phone Corporation owns 80 percent of Smart Company’s stock. At the end of 20X8, Phone and Smart reported the following partial operating results and inventory balances: Phone regul...