Questions from Financial Accounting

Q: Planner Corporation purchased 100 percent of Schedule Company’s stock on January 1

Planner Corporation purchased 100 percent of Schedule Company’s stock on January 1, 20X4, for $340,000. On that date, Schedule reported net assets with a historical cost of $300,000 and a fair value o...

Q: Plastic Company purchased 100 percent of Spoon Company’s voting common stock for

Plastic Company purchased 100 percent of Spoon Company’s voting common stock for $648,000 on January 1, 20X4. At that date, Spoon reported assets of $690,000 and liabilities of $230,000. The book valu...

Q: Player Corporation purchased 100 percent of Scout Company’s common stock on January

Player Corporation purchased 100 percent of Scout Company’s common stock on January 1, 20X5, and paid $28,000 above book value. The full amount of the additional payment was attributed to amortizable...

Q: Pistol Corporation purchased 100 percent ownership of Scope Products on January 1

Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $56,000, at which time Scope Products reported retained earnings of $10,000 and capital stock outstanding o...

Q: Pitch Corporation purchased 100 percent ownership of Southpaw Corporation on January 1

Pitch Corporation purchased 100 percent ownership of Southpaw Corporation on January 1, 20X4, for $65,000, which was $10,000 above the underlying book value. Half the additional amount was attributabl...

Q: Softball Corporation reported the following balances at January 1, 20X9:

Softball Corporation reported the following balances at January 1, 20X9: On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball’s stock. All tangible assets had...

Q: Select the most appropriate answer for each of the following questions.

Select the most appropriate answer for each of the following questions. 1. If A Company acquires 80 percent of the stock of B Company on January 1, 20X2, immediately after the acquisition, which of th...

Q: Public Corporation acquired 90 percent of Station Company’s voting common stock on

Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for $486,000. At the time of the combination, Station reported common stock outstanding of $120,000...

Q: Punk Corporation purchased 80 percent of Soul Corporation’s stock on January 1

Punk Corporation purchased 80 percent of Soul Corporation’s stock on January 1, 20X2. At that date, Soul reported retained earnings of $80,000 and had $120,000 of stock outstanding. The fair value of...

Q: Purchase Corporation purchased 60 percent of Steal Company ownership on January 1

Purchase Corporation purchased 60 percent of Steal Company ownership on January 1, 20X7, for $277,500. Steal reported the following net income and dividend payments: On January 1, 20X7, Steal had $2...