Describe the amount at which the plant assets will appear

Reference no: EM13181591

1. A 75 percent-owned subsidiary should not be consolidated when:
a. Its operations are dissimilar from those of the parent company
b. Control of the subsidiary does not lie with the parent company
c. T here is a dominant noncontrolling interest in the subsidiary
d. M nagement feels that consolidation would not provide the most meaningful financial statements

2. An 80 percent owned subsidiary that cannot be consolidated must be accounted for:
a. Under the equity method
b. Under the cost method
c. Under the equity method if the parent exercises significant influence over the subsidiary
d. A t market value if the subsidiary is in bankruptcy

3. Consolidated statements for Por Corporation and its 60 percent-owned investee, Spy Company, will not be prepared under current GAAP if:
a. T he fiscal periods of Por and Spy are more than three months apart
b. P or is a major manufacturing company and Spy is an insurance company
c. S py is a foreign company
d. T his is a combination of companies formerly under common control

4. Par Industries owns 7,000,000 shares of Sub Corporation's outstanding common stock (a 70 percent interest). The remaining 3,000,000 outstanding common shares of Sub are held by Ott Insurance Company. On Par Industries' consolidated financial statements, Ott Insurance Company is considered:
a. A n investee
b. A n associated company
c. A n affiliated company
d. A noncontrolling interest

5. On January 1, Paxton Company purchased 75 percent of the outstanding shares of Salem Co????y at a cost exceeding the book value and fair value of Salem's net assets. Using the following notations, describe the amount at which the plant assets will appear in a consolidated balance sheet of Paxton Company and Subsidiary prepared immediately after the acquisition:
Pbv = book value of Paxton's plant assets
Pfv = fair value of Paxton's plant assets
Sbv = book value of Salem's plant assets
Sfv = fair value of Salem's plant assets
a. P bv + Sbv + (Sfv - Sbv )
b. Pbv + 0.75(Sbv ) + 0.75(Sfv - Sbv )
c. Pbv + 0.75 (Sfv )
d. Pbv + Sbv + 0.75(Sfv-Sbv )

Reference no: EM13181591

Questions Cloud

Different legitimate corrections and societal goals : There are arguably different legitimate corrections/societal goals between incarcerating a violent sexual predator or serial murderer as opposed to an individual imprisoned on a felony drug charge because he or she sold narcotics to support a drug ad..

What is the arc length of a sector a circle with a central : What is the arc length of a sector a circle with a central angle of π/7 radians and a radius of 12 inches? Round answer, 2 de. Places.

Find the distance to the horizon for a person : The formula d = , where h equals the height, in feet, of the viewer's eyes, estimates the distance d, in miles, to the horizon from the viewer. Find the distance to the horizon for a person who eyes are 6 ft above the ground.

Write an inequality that describes temperatures and amounts : It is asking that, the equation of the line that separates grasslands and deserts is 35P- 3T = 140. Write an inequality that describes temperatures and amounts of precipitation that correspond to desert regions. Include a line.

Describe the amount at which the plant assets will appear : Describe the amount at which the plant assets will appear in a consolidated balance sheet of Paxton Company and Subsidiary prepared immediately after the acquisition

Nontraditional correctional approaches : Write about at least 2 nontraditional correctional approaches and address the goal of each. Do you think this approach is effective? Are some of these approaches more cost-effective than conventional incarceration?

Competing theories of corrections prevalent in today system : What are the competing theories of corrections prevalent in today's system? How are the goals of these punishment or rehabilitative strategies different? Is there data to support one particular approach over another?

Determine her total cost recovery for 2012 : Determine her total cost recovery for 2012 with respect to the seven-year class assets and the amount of any § 179 carryforward.

Explain understanding the economics of success : After viewing the videos included in this week's multimedia resources, reflect on the challenges facing the U.S. labor force due to outsourcing of jobs overseas. Discuss the effect of outsourcing of production on GDP.

User Account

All Pages