Questions from Financial Accounting

Q: Pepper Home Builders Inc. acquired 80 percent of Salty Concrete Works

Pepper Home Builders Inc. acquired 80 percent of Salty Concrete Works stock on January 1, 20X3, for $360,000. At that date, the fair value of the non controlling interest was $90,000. Salty Concrete&a...

Q: Peel Corporation purchased 60 percent of Split Products Company’s shares on December

Peel Corporation purchased 60 percent of Split Products Company’s shares on December 31, 20X7, for $210,000. At that date, the fair value of the non controlling interest was $140,000...

Q: Plant Advertising Corporation acquired 60 percent of Seed Manufacturing Company’s shares on

Plant Advertising Corporation acquired 60 percent of Seed Manufacturing Company’s shares on December 31, 20X1, at underlying book value of $180,000. At that date, the fair value of t...

Q: Pro Corporation purchased 11,000 shares of Schroeder Corporation on January

Pro Corporation purchased 11,000 shares of Schroeder Corporation on January 1, 20X3, at book value. At that date, the fair value of the non controlling interest was equal to percent of Schroeder&acir...

Q: Pond Corporation holds 75 percent of the voting shares of Spring Services

Pond Corporation holds 75 percent of the voting shares of Spring Services Company. During 20X7, Pond sold inventory costing $60,000 to Spring Services for $90,000, and Spring Services resold one-third...

Q: What is the basis of accounting in the proprietary funds? Why

What is the basis of accounting in the proprietary funds? Why?

Q: Polly Corporation owns 80 percent of Sonny Corporation’s stock and 90 percent

Polly Corporation owns 80 percent of Sonny Corporation’s stock and 90 percent of Daughter Company’s stock. The companies file a consolidated tax return each year an...

Q: Poison Corporation holds 70 percent of Snake Company’s voting common shares but

Poison Corporation holds 70 percent of Snake Company’s voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as fo...

Q: Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance

Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: The bonds of Poppy Corporation and See...

Q: Pagle Corporation holds 80 percent of Standard Company’s common shares. The

Pagle Corporation holds 80 percent of Standard Company’s common shares. The companies report the following balance sheet data for December 31, 20X1: An 8 percent annual dividend is...