User Account

All Pages

How is the acquisition of shepherd bonds treated

Assignment Help Financial Accounting
Reference no: EM132736270

Problem 1: Poodle Company owns 80 percent of the common stock of Shepherd Inc. Poodle acquires some of Shepherd's bonds from an unrelated party for less than the carrying value on Shepherd's books and holds them as a long-term investment. For consolidated reporting purposes, how is the acquisition of Shepherd's bonds treated?

Multiple Choice

A Everything related to the bonds is eliminated in the consolidation worksheet, and nothing related to the bonds appears in the consolidated financial statements.
B As a retirement of bonds.
C As a decrease in the Bonds Payable account on Shepherd's books.
D As an increase in noncurrent assets.

Reference no: EM132736270

Questions Cloud

What would be the total gross margin : If Q1-20 revenue is increased by 5%, what would be the total gross margin % in Q1-20 if incremental revenue in Q1-20 has 12% margin.
How much of a marriage penalty will they incur : Linda's 2020 taxable income as a single individual would be $212,000. When they marry before the end of 2020, how much of a marriage penalty will they incur
Explain relevance to the organization goals : Explain its relevance to the organization's goals. Discuss at least three.
Best inventory management policy : Which, in principle would be the best inventory management policy for a company that uses "milk runs" to regularly deliver products
How is the acquisition of shepherd bonds treated : Shepherd's books and holds them as a long-term investment. For consolidated reporting purposes, how is the acquisition of Shepherd's bonds treated
What is the unit product cost that would appear on job cost : The predetermined overhead rate is $37 per direct labor-hour. What is the unit product cost that would appear on the job cost sheet for this job
Find the break even point of commodity : Find the break even point (in units and in pesos) of commodity given a unit price of 25 pesos, variable cost of 5 pesos and total fixed cost of 11,500.
Estimate the beta for the private business : Estimate the beta for this private business. It has an average correlation with the market of 0.5 (i.e. 50% of the risk in the private business comes)
Prepare the consolidation entries : Matthews Co. acquired 80% of the common stocks of Jackson Co. on January 1, 2019. As of that date Jackson had the following trial balance.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd