User Account

All Pages

How much the parent recognize the goodwill interest

Assignment Help Financial Accounting
Reference no: EM132869378

The Parent Company pays $108,000 for a 90% interest of Sub Corp, and the fair value of the Sub's net assets is $100,000.

Question A. Under entity theory, how much the Parent recognize the goodwill and non-controlling interest in the balance sheet at the time of acquisition? Explain why.

Question B. Under parent company theory, how much the Parent recognize the goodwill and non-controlling interest in the balance sheet at the time of acquisition? Explain why.

Reference no: EM132869378

Questions Cloud

Creative response based on ideas related to the cultural : Examine the diverse cultural, social, physical, cognitive and emotional worlds of young people and the impact of these on learning, resilience and wellbeing
Examination of course objectives : Describe the key factors, such as demographic, economic, natural, technological, political, and cultural developments, that affect marketing strategies.
Calculate the expected cash collections for february : Yurty Expects to collect 40% of receivables, Customers who pay in the month of sale receive a 5% discount. Calculate the expected cash collections for February.
Marketing Objectives : Interpret the challenges a company faces in developing new products in today's global economy. Construct a strategic marketing plan.
How much the parent recognize the goodwill interest : Under parent company theory, how much the Parent recognize the goodwill and non-controlling interest in the balance sheet at the time of acquisition?
How much power do suppliers have to raise price : How much power do suppliers have to raise price? How many suppliers are there, and are there available substitutes? How costly is switching to new suppliers?
How sensitive are buyers to changing prices : How sensitive are buyers to changing prices? Are buyers able and willing to switch, and how costly is it to switch? Are buyers highly concentrated or diffuse?
Expected-value decision rule : Conduct an Internet and literature search on the topic of the expected-value decision rule.
What are standardized work instructions : What are standardized work instructions? Comment on some of the characteristics that effective standardized work instructions have and the benefits

Reviews

Write a Review

Financial Accounting Questions & Answers

  What will be the estimated residual earnings

What will be the estimated residual earnings for 2019 and 2020, respectively? Suppose you forecast a firm's comprehensive earnings to be $16 million

  Which of the statements is true about the direct method

Find Which of the statements is true about the direct method of allocating support department costs to production departments?

  Calculate the current price of par value bond

Calculate the current price of a $5,000 par value bond that has a coupon rate of 11 percent, pays coupon interest quarterly (i.e., 4 times per year)

  Compute kraft inventory turnover for the year

Compute the number of days required by Kraft to sell its average inventory.  Compute Kraft’s inventory turnover for the year.

  Discuss the demand in the market for conservative accounting

Discuss the demand in the market for conservative accounting principles. Discuss in detail and Give two examples of conservatism in asset valuation.

  Evaluate the company vulnerability to current

Evaluate the company’s vulnerability to current financial threats such as a recession, higher interest rates, and global competition.

  Social security number

Keisha made alimony payments totaling $9,600 for the year to her former husband Alex, an unemployed mine worker, whose social security number is 412-34-5671. She also received a 1099 INT from Pine Cove Credit Union in the amount of $204.75

  Basic inventory data for june are presented

Basic inventory data for June are presented  for a business that employs the lower of cost or market basis of inventory valuation.

  Esquire company sold some merchandise to customer

on june 30 2016 the Esquire company sold some merchandise to a customer for $54000. In payment Esquire agreed to accept a 7 % note requiring the payment of interest and principal on March 31. 2017. The 7% rate is appropriate in this situation.

  How is profit for the year calculated

A times-interest-earned ratio of 4.8 times is better than a times-interest-earned ratio of 5.3 times. How is profit for the year calculated?

  Make a report to indicate differences of the two reporting

Make a report to indicate the differences of the two reporting income statements. Your report should consist of the income statement for variable costing

  Transactions involving promissory notes

Akron Corporation engaged in the following transactions involving promissory notes in 20x1 and 20x2. Mar. 1 Received payment in full from Marge Bailey. Assume that all interest has already been accrued to the end of February but no cash receipt has b..

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