Hobbes Corporation’s purchase of stock of Tiger Company gave Hobbes voting control over Tiger. A portion of the amount Hobbes paid reflects the fact that Tiger's inventories have a market value in excess of their book value. How should this portion of the cost be accounted for by Hobbes Corporation? Select one: a. Included in the carrying value of the investment until disposition of the stock b. Amortized against investment revenue over the remaining useful life of the investment c. Reported as goodwill on the balance sheet of Hobbes Corporation d. Added to the inventory cost on Hobbes's consolidated balance sheet

Q: X company owns 35% of common stock of Y Co. and used the squirt meth to acct for the investment.…

A: Share of dividend amount will not reduce income from investment.  The share of dividend will reduce…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO PROMDI CO issues  CARDO CO = 30000…

Q: On November 1, 2012, management of Dianne Company committed to a plan to dispose of a major…

A: Concept Loss from discontinued operation shall be disclosed separately in the income statement The…

Q: Bendi Corp. purchased 1,000 shares of Kala Corp. for $16 per share. The investment represents 5%…

A: Answer:   Option b.

Q: In March 2021, ASX-listed company Computershare Ltd (CPU) raised $835M through a renounceable rights…

A: Renounceable rights are offers made by a corporation to its shareholders to acquire more shares of…

Q: Jam Ltd acquired all the equity in Cab Ltd on 31 December 20X4 for $370 000. At the control date,…

A: The intercompany sales are to be given effect for the unrealized profit. The intercompany purchase…

Q: BBB,Inc sells its unprofitable division A at a gain of $20,000. Before the sale, division A had a…

A: We know that continuing operations means the operating activities of the company which it undertakes…

Q: On January 2, 2010, Megan Company declared and distributed its only investment in equity securities…

A: Solution:  Megan Company charge its accumulated profit as a result of the property dividend…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…

Q: Pencil Company purchases 80% of the outstanding shares of Eraser Company for P9,000,000. The…

A: Actual cost of acquisition = Cost of acquistion - Control premium= P6,000,000 -P400,000=P5,600,000…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO Purchase consideration of CARDO CO =…

Q: Pilgrim Products

A: Factors that Influence decidingThere square measure many necessary factors that influence deciding.…

Q: Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for…

A: In terms of legality and day-to-day operations, the given acquisition will maintain the parent…

Q: On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration…

A:

Q: Suppose that Purchasing Company acquires 90% of Selling Company by issuing stock valued at $800,00O.…

A: Formula Used:

Q: ABC Corporation will be acquiring XYZ Corporation. The latter's fair value has not yet been…

A: In the context of the given question, we need to determine the value of control over XYZ company…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…

Q: What amount of goodwill is presented in the consolidated statement of financial position on…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Franklin Corp. has a debt investment that it has held forseveral years. When it purchased the debt…

A: Fair value option: Fair value option is the option for an organization to record its financial…

Q: Company A owns 40 percent of Company B and exercisessignificant influence over the management of…

A: Introduction: Business combination: Business combination refers to the process of aggregating the…

Q: Reyd Company has bought the entity from previous owners through a leveraged management buy-in (MBI).…

A: As per IAS 38 of International financial reporting standards  Intangible asset is an asset which…

Q: A corporation has sold some of its fixed assets for $53,500 representing a gain of $3,500. Under the…

A: The corporation has sold its fixed asset at a gain of $ 3500 In cash flow statement operating…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…

Q: BLACKPINK Company acquired a 70% interest in the LISA Corp. for P1,420,000 when the book value of…

A: This question deals with the computing goodwill for BLACKPINK’s consolidated financial statement.…

Q: Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for…

A: Consolidated balance sheet is the vital financial statement (FS) under the case of the group…

Q: King’s Road recently acquired all of Oxford Corporation’s stock and is now consolidating the…

A: A) Deferred Tax liability:   Deferred Tax liability = $ 51200.

Q: Abrams Company is a sole proprietorship. The book value of its identifiable net assets is $400,000,…

A: In case the company is exchanged for the common stock of another company as opposed to receipt of…

Q: On August 31, 2002, Rubics Company purchased the following equity securities and irrevocably elected…

A: Fair value through other comprehensive income securities are those securities on which purpose is…

Q: n January 2, 2010, Megan Company declared and distributed its only investment in equity securities…

A: Solution: Megan Company Shpuld charge its accumulated profit by "P500,000"  as a result of the…

Q: Camel Company sells a segment of its operations at a loss. Camel has not previously experienced such…

A: Business enterprises prepare the income statement so as to know how much amount of Gross profit or…

Q: Sailor Company's has brought the entity from previous owners through a leverage management buy-in…

A: Intangible asset refers to those assets which does not exist in any sort of physical aspect. It…

Q: Jones Company obtains all of the common stock of Hudson, Inc., by issuing 50,000 shares of its own…

A: A security that represents ownership in a firm is known as common stock. The board of directors is…

Q: Major Corporation is acquiring Abrams Company by issuing its common stock in a nontaxable exchange.…

A: Acquisition is a corporate term used to represent purchase of another company and gaining the…

Q: Jones Company obtains all of the common stock of Hudson, Inc., by issuing 50,000 shares of its own…

A: In accounting, fair value refers to the unbiased and rational assumption of the potential market,…

Q: In March 2021, ASX-listed company Computershare Ltd (CPU) raised $835M through a renounceable rights…

A: Primary markets are those markets where companies issue fresh shares in form of initial public…

Q: Pillow Company is purchasing an 80% interest in the common stock of Sleep Company  for $800,000.…

A: Non controlling interest is the aggregate interest of all minority shareholders of the company. It…

Q: Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for…

A: Consolidated balance sheet is the combined balance sheet of parent company and subsidiary company,…

Q: Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to…

A: The dividend represents the profit distributed among shareholders as per their share holdings.

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: The Vary Company has total assets with a book value of $3,000,000 and a fair value of $4,000,000. A…

A: This is a structure of variable interest entity wherein the primary company does not has the voting…

Q: Your client, Lewison International, has informed you that it has reached an agreement with Herro…

A: Tax Liability is the different company's taxable income as shown in the income statement and in…