25. Corporation Parent (P)owns 85 percent of Corporation A1; Corporation A1 owns 60 percent of Corporation A2; Corporation A2 owns 90 percent of A3;Corporation A3 owns 60 percent of Corporation A4 and 15 percent of Corporation A2; Corporation A4 owns 100 percent of Corporation A5. ldentify theconsolidated group(s) of corporations. a. P---A1---A2---A3---A4---A5 b. P---A1 only c. P--Aland A2---A3---A4---A5 d. P--A1; A2--A3; and A4---A5 e.P.--AlandA2---A3

Introduction: Company A is holding more than 50% of its share in company B. Hence B is considered to…

Answered: 25. Corporation Parent (P)owns 85…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 37P

See similar textbooks

Similar questions

Corporation Parent (P)owns 85 percent of Corporation A1; Corporation A1 owns 60 percent of Corporation A2; Corporation A2 owns 90 percent of A3; Corporation A3 owns 60 percent of Corporation A4 and 15 percent of Corporation A2; Corporation A4 owns 100 percent of Corporation A5. Identify the consolidated group(s) of corporations. a. P---A1---A2---A3---A4---A5 b. P---A1 only c. P---A1and A2---A3---A4---A5 d. P---A1; A2---A3; and A4---A5 e.P---A1andA2---A3
An enterprise may not be a Subchapter S corporation if it owns more than ________ of the stock of a subsidiary corporation. Multiple Choice a. 50 percent b. 60 percent c. 70 percent d. 80 percent
Problem 15-56 (LO 15-4) Determine the amount of taxable dividend, nontaxable distribution, and capital gain for the distributions made in each of the following cases: Required: a. Corporate E&P of $19,800, shareholder stock basis of $20,800, distribution of $10,400. b. Corporate E&P of $10,500, shareholder stock basis of $10,000, distribution of $9,500 c. Corporate E&P of $18,200, shareholder stock basis of $6,100, distribution of $23,600. d. Corporate E&P of $16,400, shareholder stock basis of $9,150, distribution of $30,450. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. a. b. C. d. Taxable dividend Nontaxable distribution Capital gain
Use the following data for Questions 6-11 Frank, Sara, and Gilbert form FSG Services, Ic., an S corporation, by contributing the following properties: Shareholder Property Basis Value Frank Cash 150,000 150,000 Sara Cash 80,000 80,000 Gilbert Liability on building contributed by Gilbert assumed by corporation Equipment Land and Building 40,000 220,000 70,000 300,000 100,000 The three shareholders above own 30%, 30%, and 40% of the corporation respectively. Sara also loans the corporation $50,000 and the debt is evidenced by an executed corporate note. During the year, the corporation earns ordinary operating income before officer salaries of $400,000. Frank, Sara, and Gilbert earn officer salaries of $20,000, $100,000, and $140,000 respectively. In addition to these payments, each shareholder also takes a $20,000 cash distribution during the year. What is Frank's basis for his stock at formation? What is Sara's basis in stock at formation? What is Gilbert's basis in stock at formation?…
2. If Company A owns 75% of Company B and Company B owns 45% of Company C. How much Company A owns in Company C. 45 % 75% 35% 33 ¾ %
4. The Profit attributable to equity holders of parent (Parent’s Interests/Controlling Interest in Profit) for 20x1: A. 356,500 C. 363,075 B. 362,200 D. 386,5005. The Consolidated/Group Net Income for 20x1: A. 356,500 C. 363,075 B. 362,200 D. 387,375 6. The non-controlling interest on December 31, 20x1 A. 208,700 C. 174,900 B. 189,300 D. 173,100
The maximum number of actual shareholders in an S corporation is: a. 75. b. 100. c. 200. d. Some other number. e. Indeterminable.
24. Based on Item 21, what is the amount of contributed capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 640,000 b. 600,000 c. 260,000 d. 900,000 25. Based on Item 21, what is the amount of legal capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity?
1. Discuss the advantages of forming a corporation over a partnership. 2. Discuss the capitalization requirement for a Corporation upon application with the SEC Given: Corporation Y applied for a P 10 Million Authorized Capital stock with P 10 par value /share
C:8-29 Affiliated Group Definition. In each of the following cases, determine the corporations that comprise an affiliated group. All corporations are includible corporations and have one class of stock unless otherwise indicated. a. P Corporation owns all the stock of S and T Corporations. T owns all of U Corporation’s stock. T and U are Belgian corporations. b. Assume the same facts as in Part a except U is a domestic corporation. c. Omar, an individual, owns 100% of P Corporation’s stock and 30% of S Corporation’s stock. P owns 70% of S’s stock. d. G is a German corporation. G owns all of P Corporation’s stock. P owns all of S Corporation’s stock. e. P Corporation owns all of S Corporation’s stock. P and S each own 50% of T, a domes-tic limited liability company.
XX acquires 80% of the share capital of LL on 1 August 2020 and is preparing its group financial statements for the year ended 31 December 2020. How will LL’s results be included in the group statement of profit or loss? A. 100% of LL’s revenue and expenses for the period ended 1 August 2020 to 31 December 2020 B. 80% of LL’s revenue and expenses for the year ended 31 December 2020 C. 100% of LL’s revenue and expenses for the year ended 31 December 2020 D. 80% of LL’s revenue and expenses for the period 1 August 2020 to 31 December 2020
How much is the Profit attributable to equity holders of parent (Parent’s Interests/Controlling Interest in Profit) for 20x1:A. 356,500 C. 363,075B. 362,200 D. 386,500

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SEE MORE TEXTBOOKS