Questions from Financial Reporting

Q: In January 2017, Harold Corporation acquired 20% of Otis Company’s

In January 2017, Harold Corporation acquired 20% of Otis Company’s outstanding common stock for $400,000. This investment gave Harold the ability to exercise significant influence over Otis. The book...

Q: ESCO Technologies Inc. and Take-Two Interactive Software, Inc

ESCO Technologies Inc. and Take-Two Interactive Software, Inc., both capitalize software development costs in accordance with their respective policies as summarized here. The condensed financial info...

Q: Superfine Company collected the following data in preparing its cash flow statement

Superfine Company collected the following data in preparing its cash flow statement for the year ended December 31, 2017: Amortization of bond discount ……………...……………...……………...……………...$ 1,000 Dividend...

Q: On April 30, 2017, Pound Corp. acquired for cash

On April 30, 2017, Pound Corp. acquired for cash all 200,000 shares of the outstanding common stock of Shake Corp. for $20 per share. At April 30, 2017, Shake’s balance sheet showed net assets with a...

Q: On April 1, 2017, Dart Company paid $620,

On April 1, 2017, Dart Company paid $620,000 for all issued and outstanding common stock of Wall Corporation in a transaction properly accounted for under the acquisition method. Wallâ€...

Q: On January 1, 2017, Pitt Company acquired an 80%

On January 1, 2017, Pitt Company acquired an 80% investment in Saxe Company. The acquisition cost was equal to Pitt’s equity in Saxe’s recorded net assets at that date. On January 1, 2017, Pitt and Sa...

Q: Mason Manufacturing had 600,000 shares of common stock outstanding and

Mason Manufacturing had 600,000 shares of common stock outstanding and 150,000 shares of $100 par value preferred stock outstanding January 1, 2017. An additional 120,000 shares of common stock were i...

Q: Hukle Company has provided the following information pertaining to its postretirement plan

Hukle Company has provided the following information pertaining to its postretirement plan for 2017: Service cost ……………….…………………………. $240,000 Benefit payment made at 12/31 ……………………. 110,000 Inter...

Q: The following information pertains to Lee Corporation’s defined benefit pension plan for

The following information pertains to Lee Corporation’s defined benefit pension plan for 2017: Service cost ……………….……………….……………….…………… $160,000 Actual and expected return on plan assets ……………….………………...

Q: Effective April 27, 2017, Dorr Corporation’s shareholders approved a two

Effective April 27, 2017, Dorr Corporation’s shareholders approved a two-for-one split of the company’s common stock and an increase in authorized common shares from 100,000 shares (par value of $20 p...