Purchase price in the consolidated financial statement

Assignment Help Accounting Basics

Reference no: EM13120202

On January 1, 2011, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The bonds had a carrying value of $421,620, and Riley paid $401,937 for them.

How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2011?

A. The difference is added to the carrying value of the debt.

B. The difference is deducted from the carrying value of the debt.

C. The difference is treated as a loss from the extinguishment of the debt.

D. The difference is treated as a gain from the extinguishment of the debt.

E. The difference does not influence the consolidated financial statements.

Reference no: EM13120202

Questions Cloud

What type of liabilities are these called : There are situations wherein a company faces a potential liability, but is not certain of all of the details associated with such potential liabilities.

Find proportion of employees who have mba : Company have MBA degrees. Also, 64 percent of the managers have MBA degrees. Using the probability formulas, find the proportion of employees who either have MBAs or are managers.

Illustrate what minimum speed will allow the ball to clear : Illustrate what minimum speed will allow the ball to clear the roof?at what angle should the ball be tossed. (in picture at roof starts at 3m and the angle of the roof there is 45degrees

Retail sales - neckwarmers : Neckwarmers. Mountainside Fleece sold 40 Neckwarmers. Solid-color neckwarmers sold for $9.90 each and print ones sold for $12.75 each.

Purchase price in the consolidated financial statement : How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2011?

What volume will the gas occupy : Liquid nitrogen has a density of 0.807 g/mL at -195.8 °C. If 1.00 L of N2(l) is allowed to warm to 25°C at a pressure of 1.0 atm, what volume will the gas occupy.

What was their net income for the year : McKinney Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year they issued common stock totaling $141,000. What was their net income for the year?

Evaluate exponential and logarithmic functions : The bacteria Escherichia coli are commonly found in the human bladder. Suppose that 3000 of the bacteria are present at time t-0. Then t minutes later, the number of bacteria present can be approximated by:

Compute the 2012 tax liability for charlotte : Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her. She also maintains the household in which her parents live and furnished 60% of their support.

User Account

All Pages