Wixi Co. has the following equity investments in FSN, DELL, and ATI. (1) Which of these companies are subsidiaries of Wixi? (2) How are individual assets and liabilities of a parent and its subsidiary(ies) reported on a balance sheet? FSN stock: Wixi owns 70% of the voting common stock and has controlling influence. DELL stock: Wixi owns 5% of the voting common stock and has insignificant influence. ATI stock: Wixi owns 30% of the voting common stock and has significant influence.

a.Draw a picture illustrating the following fact pattern involving trust-preferred securities. Bank Z sets up a trust (a subsidiary entity) and owns 100% of the common stock in the trust. That trust issues preferred securities to investors (in exchange for cash) and the investors earn periodic fixed dividend payments on their preferred shares. Using the funds from the sale of preferred stock, the trust purchases junior subordinated debt from Bank Z and this debt pays periodic fixed interest payments equal to the dividend payments made by the trust. The trust has a call option, allowing it to call back the preferred shares from investors at its option. Additionally, Bank Z has a call option allowing it to call back its debt from the trust at its option. Bank Z guarantees to the trust’s investors that the trust will use its available cash to make interest payments.

The following information applies to the questions displayed below.] Shares sold for consideration other than cash (maybe services or a noncash asset) should be recorded at the fair value of the shares or the noncash consideration, whichever seems more clearly evident. Todd Corporation sold 4 million of its $1 par common shares at $6 per share. The company received net proceeds from the public offering of $23,600,000, after deducting legal, promotional, and accounting services necessary to effect the sale. Prepare the appropriate journal entry for the sale of the stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field

Linpro Industries is considering the acquisition of Odetics Inc. in a stock-for-stock exchange. Assume no immediate synergistic benefits are expected. Selected financial data on the two companies are shown below: Linpro Odetics Sales (millions) $480 $90 Net income (millions) $38 $10.4 Common shares outstanding (millions) 10 2.1 Earnings per share $3.80 $4.95 Common stock (price per share) $45.60 $74.25 Calculate Linpro's post-merger EPS if the Odetics shareholders accept an offer of $90 a share in a stock-for-stock exchange. Question 9Answer a. $4.38 b. $3.81 c. $4.29 d. $3.42