Questions from Financial Accounting

Q: Azure Enterprises acquired 90 percent of Brown Corporation’s voting common stock on

Azure Enterprises acquired 90 percent of Brown Corporation’s voting common stock on January 1, 20X3, for $315,000. At that date, the fair value of the non controlling interest of Bro...

Q: Power Corporation acquired 100 percent of Strip Corporation in a nontaxable transaction

Power Corporation acquired 100 percent of Strip Corporation in a nontaxable transaction. The following selected information is available for Strip Corporation at the acquisition date: Strip Corporat...

Q: In its consolidated cash flow statement for the year ended December 31

In its consolidated cash flow statement for the year ended December 31, 20X2, Plant Corporation reported operating cash inflows of $284,000, financing cash outflows of $230,000, investing cash outflow...

Q: Acorn Corporation owns 80 percent of Beet Corporation’s common stock. It

Acorn Corporation owns 80 percent of Beet Corporation’s common stock. It purchased the shares on January 1, 20X1, for $520,000. At the date of acquisition, the fair value of the non controlling intere...

Q: Sound Manufacturing Corporation prepared the following balance sheet as of January 1

Sound Manufacturing Corporation prepared the following balance sheet as of January 1, 20X8: The company is considering a 2-for-1 stock split, a stock dividend of 4,000 shares, or a stock dividend of...

Q: Platinum Corporation acquired 10,500 shares of the common stock and

Platinum Corporation acquired 10,500 shares of the common stock and 800 shares of the 8 percent preferred stock of Silver Company on December 31, 20X4, at the book value of the underlying stock intere...

Q: Presley Pools Inc. acquired 60 percent of the common stock of

Presley Pools Inc. acquired 60 percent of the common stock of Sammy Swim Company on December 31, 20X6, for $1,800,000. At that date, the fair value of the noncontrolling interest was $1,200,000. The f...

Q: Purple Company owns 90 percent of the common stock and 60 percent

Purple Company owns 90 percent of the common stock and 60 percent of the preferred stock of Sage Corporation, both acquired at underlying book value on January 1, 20X1. At that date, the fair value of...

Q: Paper Corporation acquired 75 percent of Script Company’s common stock on May

Paper Corporation acquired 75 percent of Script Company’s common stock on May 15, 20X3, at underlying book value. Script’s balance sheet on December 31, 20X6, conta...

Q: Penn Corporation purchased 80 percent ownership of State Company on January 1

Penn Corporation purchased 80 percent ownership of State Company on January 1, 20X2, at underlying book value. At that date, the fair value of the non controlling interest was equal to 20 percent of t...