Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. Water Company owns 80 percent of Fire Company's outstanding common stock. On December 31, 20x9, Fire sold equipment to Water at price in excess of Fire's carrying amount, but less than its original cost. On consolidated balance sheet at December 31, 20x9, carrying amount of the equipment must be reported at:

a. Water's original cost
b. Fire's original cost
c. Water's original cost less Fire's recorded gain
d. Water's original cost less 80 percent of Fire's recorded gain

2. Port Inc. owns 100 percent of Salem Inc. On January 1, 20x2, Port sold delivery equipment to Salem at gain. Port had owned equipment for two years and used five-year straight-line depreciation rate with no residual value. Salem is using three-year straight-line depreciation rate with no residual value for equipment. In consolidated income statement, Salem's recorded depreciation expense on equipment for 20x2 will be decreased by:

a. 20 percent of the gain on the sale
b. 33 1/3 percent of the gain on the sale
c. 50 percent of the gain on the sale
d. 100 percent of the gain on the sale

3. Middle Company holds 60 percent of Bottom Corporation's voting shares. Bottom has developed new type of production equipment that seems to be quite marketable. It spent $40,000 in developing equipment; though, Middle agreed to buy production rights for machine for $100,000. If intercompany sale occurred on January 1, 20x2, and production rights are expected to have value for five years, at what amount must rights be reported in consolidated balance sheet for December 31, 20x2?

a. $0
b. $32,000
c. $80,000
d. $100,000

4. A 70 percent owned subsidiary company declares and pays cash dividend. What effect does dividend have on retained earnings and minority interest balances in parent company's consolidated balance sheet?

a. No effect on either retained earnings or minority interest
b. No effect on retained earnings and decrease in minority interest
c. Decreases in both retained earnings and minority interest
d. A decrease in retained earnings and no effect on minority interest

5. On January 1, 20x1, Prim Inc. acquired all of Scrap Inc.'s outstanding common shares for cash equal to stock's book value. Carrying amount of Scrap's assets and liabilities approximated their fair values, except that carrying amount of its building was more than fair value. In creating Prim's 20x2 consolidated income statement, which of the given adjustments would be made?

a. Decrease depreciation expense and recognize goodwill amortization
b. Increase depreciation expense and recognize goodwill amortization
c. Decrease depreciation expense and recognize no goodwill amortization
d. Increase depreciation expense and recognize no goodwill amortization

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920698

Have any Question? 


Related Questions in Accounting Basics

Careers in accountingaccounting is the study of how

Careers in Accounting Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Question 1ryan withdrew cash from the business to pay his

Question 1 Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________. A. increase in both cash and withdrawal B. decrease in both cash and withd ...

1 what is the difference between a significant deficiency

1) What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls unde ...

Prospective analysis forecastingquestion 1glaxosmithkline

Prospective Analysis: Forecasting Question 1. GlaxoSmithKline is one of the largest pharmaceutical firms in the world, and over an extended period of time in the recent past, it consistently earned higher ROEs than the p ...

Assignmentsec 10k link Assignment SEC 10K Link:

Assignment SEC 10K Link: https://www.sec.gov/Archives/edgar/data/908255/000090825516000077/a10k12312015.htm Position: 358 Income Statement: 53 Balance Sheet: 52 Statement of Stockholders Equity: 56 Statement of Cash Flow ...

1 mrs beach wants to invest a lump sum of money today to

1. Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a. How much of a deposit would she have to make if the interest rate on the C.D. was 5%? b. What would Mr ...

Incorporation of plummet companyplummet company is created

Incorporation of Plummet Company Plummet Company is created with the following asset contributions. John and Jill are equal owners in this new business venture. Shareholder Assets Basis Fair Market Value John Cash Servic ...

Article critiqueuse the csu online library to locate and

Article Critique Use the CSU Online Library to locate and review a scholarly article found in a peer reviewed journal related to: Unions, Labor Relations, or International Human Resources Management. There is a minimum r ...

Q1 what was the logic behind the gentiles who asked for

Q.1 what was the logic behind the gentiles who asked for chanja Finkelsztjains world goods( and similar anecdotes) Q.2 how does the author regard the plundering of the Jews? Q.3 Why did so many Jews leave valuables with ...

Westerville company reported the following results from

Westerville Company reported the following results from last year % 2013 operations: Sales $ 1,000,000 Variable expenses 300,000 -------------------------------------- Contribution margin 700,000 Fixed expenses 500,000 - ...

  • 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