Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. How is portion of consolidated earnings to be allocated to noncontrolling interest in consolidated financial statements determined?

a. Parent's net income is subtracted from subsidiary's net income to determine noncontrolling interest
b. Subsidiary's net income is extended to noncontrolling interest
c. Amount of subsidiary's earnings recognized for consolidation purposes is multiplied by noncontrolling interest's percentage of ownership
d. Amount of consolidated earnings on consolidated workpapers is multiplied by noncontrolling interest percentage on balance sheet date

2. On January 1, 20x5, Post Company bought 80 percent investment in Stake Company. Acquisition cost was equal to Post's equity in Stake's net assets at that date. On January 2, 20x5, Post and Stake had retained earnings of $500,000 and $100,000, respectively. In 20x5, Post had net income of $200,000, that included its equity in Stake's earnings, and declared dividends of $50,000; Stake had net income of $40,000 and declared dividends of $20,000; there were no other intercompany transactions between parent and subsidiary. On December 31, 20x5, what must the consolidated retained earnings be?

a. $650,000
b. $666,000
c. $766,000
d. $770,000

Items 8 and 9 are based on given information:

On January 1, 20x8, Ritt Corporation bought 80 percent of Shaw Corporation's $10 par common stock for $975,000. On this date, carrying amount of Shaw's net assets was $1,000,000. Fair value of Shaw's identifiable assets and liabilities were same as their carrying amounts except for plant assets (net), that were $100,000 in excess of carrying amount. For year ended December 31, 20x8, Shaw had net income of $190,000 and paid cash dividends totaling $125,000.

3. In January 1, 20x8, consolidated balance sheet, goodwill must be reported at:

a. $0
b. $75,000
c. $95,000
d. $175,000

4. In December 31, 20x8 consolidated balance sheet, noncontrolling interest must be reported at:

a. $200,000
b. $213,000
c. $220,000
d. $233,000

5. Perez Inc. owns 80 percent of Senior Inc. During 20x2, Perez sold goods with 40 percent gross profit to Senior. Senior sold all of these goods in 20x2. For 20x2 consolidated financial statements, how must the summation of Perez and Senior income statement items be adjusted?

a. Sales and cost of goods sold must be reduced by the intercompany sales
b. Sales and cost of goods sold must be reduced by 80 percent of intercompany sales
c. Net income should be reduced by 80 percent of the gross profit on intercompany sales.
d. No adjustment is essential

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920709

Have any Question? 


Related Questions in Accounting Basics

Analyze tootsie rolls 2015 consolidated statements of

Analyze Tootsie Roll's 2015 Consolidated Statements of Earnings and Retained Earnings. Discuss the relevance for a manufacturer of reporting a gross profit amount. Then calculate or report the 2015 Gross Profit Rate (%) ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "fairness of the federal estate tax and income and principal in fiduciary accounting" please respo ...

Part 1true false questionsselect the correct answer1 a

Part 1: True / False Questions Select the correct answer 1. A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates. True False 2. The use of a predeterm ...

Managerial accounting and financial accountingcompare and

Managerial Accounting and Financial Accounting Compare and Contrast Managerial Accounting and Financial Accounting. Be sure to discuss how managerial accounting is useful for providing information for at least one of the ...

Aountingfalcons incorporatedassetsnbsp20132012cash and

Accounting FALCONS INCORPORATED Assets   2013 2012 Cash and Marketable Securities 10 80 Mc.. Receivable 375 315 Inventories 615 415 Total Current Ass. 1,000 810 Net plant and equipment 1,000 870 TOTAL ASSETS 2,000 1,680 ...

Fasb ongoing projectproject objectivedescribe the history

FASB Ongoing Project Project Objective Describe the history, current status, and adoption implications of a Financial Accounting Standards Board ongoing project. Requirements The FASB has several ongoing projects that in ...

Accountingi for the month of january jims landscaping

Accounting I. For the month of January Jim's Landscaping Company has the following transactions: 1. Borrowed $5,000 from First National Bank on a note due in two years. 2. Received $12,500 cash from investors and issued ...

Accountingbulluse the internet to research the annual

Accounting • Use the Internet to research the annual report of at least one merchandising company. Determine which costing method (Last In First Out [LIFO], First In First Out [FIFO], or weighted average cost) that is us ...

Assignmentapplication break-even analysiswhen expenses and

Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relation ...

Accounting individual assignmentpart 1 - royal oak taxation

ACCOUNTING INDIVIDUAL ASSIGNMENT PART 1 - Royal Oak Taxation Advisory Service has the following transactions for the month of December 2016: Dec. 1 Commenced business by depositing $50 000 in a bank account in the name o ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro