Reference no: EM133119094
Question - Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $431,000 and $181,000, respectively, common stock outstanding of $96,000, and retained earnings of $154,000. The book values and fair values of Scrub's assets and liabilities were identical except for land, which had increased in value by $23,000, and inventories, which had decreased by $7,000.
Required -
a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $275,000.
-Record the basic consolidation entry.
-Record the excess value (differential) reclassification entry.
b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $246,000.
-Record the basic consolidation entry.
-Record the excess value (differential) reclassification entry.
|
What is portfolio cash flow
: Consider an option to buy £10,000 for €12,500. In the next period, if the pound appreciates against the dollar by 37.5% then the euro will appreciate against th
|
|
What is the NPV of this opportunity
: The opportunity requires an initial investment of $2,000 plus an additional investment at the end of the second year of $10,000. What is NPV of this opportunity
|
|
Hedge with money market funds
: On May 1st, Larkin Hydraulics, a wholly owned subsidiary of Caterpillar (U.S.), sold a 12 megawatt compression turbine to Rebecke-Terwilleger Company of the Net
|
|
What will be Blue depreciation expense
: Blue decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Blue's depreciation expense for 2020
|
|
Record the basic consolidation entry
: Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. Record the basic consolidation entry
|
|
What amount should erode report related to deferred income
: Taxable income (tax return) $240,000. What amount(s) should Erode report related to deferred income taxes in its 2018 balance sheet
|
|
Evaluation of the leadership style
: An evaluation of the leadership style of your selected leader, according to an existing leadership style theory. How would you describe your leadership style?
|
|
Prepare a Trial Balance for Pete Pets
: Prepare a Trial Balance for Pete's Pets, showing the debits and credits balance. And what is the net income for Pete's Pets
|
|
Prepare an income statement for the quarter
: The company buys amplifiers from several suppliers with an average price of $280. Prepare an income statement for the quarter
|