Questions from Financial Accounting

Q: Pop Corporation acquired 70 percent of Soda Company’s voting common shares on

Pop Corporation acquired 70 percent of Soda Company’s voting common shares on January 1, 20X2, for $108,500. At that date, the non controlling interest had a fair value of $46,500 an...

Q: Point Corporation acquired 60 percent of Stick Company’s stock on January 1

Point Corporation acquired 60 percent of Stick Company’s stock on January 1, 20X3, for $24,000 in excess of book value. On that date, the book values and fair values of Stickâ&...

Q: Song Corporation was created on January 1, 20X0, to develop

Song Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Polka Company purchased 90 percent of Song’s common stock at underlying book value....

Q: The December 31, 20X6, condensed balance sheets of Pine Corporation

The December 31, 20X6, condensed balance sheets of Pine Corporation and its 90 percent-owned subsidiary, Slim Corporation, are presented in the accompanying worksheet. Additional Information: 1. Pine...

Q: Prime Corporation acquired 80 percent of Steak Company’s voting shares on January

Prime Corporation acquired 80 percent of Steak Company’s voting shares on January 1, 20X4, for $280,000 in cash and marketable securities. At that date, the noncontrolling interest h...

Q: On December 31, 20X7, Prime Corporation recorded the following entry

On December 31, 20X7, Prime Corporation recorded the following entry on its books to adjust from the fully adjusted equity method to the modified equity method for its investment in Steak Company stoc...

Q: The trial balance data presented in Problem P6-34 can be

The trial balance data presented in Problem P6-34 can be converted to reflect use of the cost method by inserting the following amounts in place of those presented for Prime Corporation: Investment i...

Q: Palm Corporation and Staple Company have announced terms of an exchange agreement

Palm Corporation and Staple Company have announced terms of an exchange agreement under which Palm will issue 8,000 shares of its $10 par value common stock to acquire all of Staple Companyâ...

Q: Package Corporation acquired 90 percent ownership of Sack Grain Company on January

Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1, 20X4, for $108,000 when the fair value of Sack’s net assets was $10,000 higher than its $110,000 book value. The i...

Q: izza Corporation acquired 75 percent of Slice Corporation’s voting common stock on

izza Corporation acquired 75 percent of Slice Corporation’s voting common stock on January 1, 20X4, for $348,000, when the fair value of its net identifiable assets was $464,000 and the fair value of...