Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 7, Problem 14P
a.
To determine
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. It’s a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
The company A’s investment in company B’s account if all companies use the equity method for internal reporting purposes on December 31, 2020
b)
To determine
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. It's a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
The consolidated net income for the business combination for the year 2021.
c)
To determine
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. It's a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
The income attributable to non-controlling interest for the year 2021.
d)
To determine
Concept Introduction:
When a company has two or more subsidiaries, if it maintains a single income statement with all the subsidiaries, then it is called a consolidated income statement. It's a part of the consolidated financial statement. It is a report that compiles all of a parent company's and subsidiary's actions into one document.
The accrual basis net income of B companies for the years 2020 and 2021.
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On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $352,000. Birch reported a $380,000 book value, and the fair value of the noncontrolling interest was $88,000 on that date. Then, on January 1, 2020, Birch acquired 80 percent of Cedar Company for $128,000 when Cedar had a $106,000 book value and the 20 percent noncontrolling interest was valued at $32,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year remaining life.
These companies report the following financial information. Investment income figures are not included.
2019
2020
2021
Sales:
Aspen Company
$
512,500
$
557,500
$
827,500
Birch Company
239,000
360,750
523,200
Cedar Company
Not available
235,200
310,200
Expenses:
Aspen Company
$
400,000
$
437,500
$
522,500
Birch Company
177,000
286,000
435,000
Cedar Company
Not available
216,000…
On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $352,000. Birch reported a $380,000 book value, and the fair value of the noncontrolling interest was $88,000 on that date. Then, on January 1, 2020, Birch acquired 80 percent of Cedar Company for $128,000 when Cedar had a $106,000 book value and the 20 percent noncontrolling interest was valued at $32,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year remaining life.
These companies report the following financial information. Investment income figures are not included.
2019
2020
2021
Sales:
Aspen Company
$
512,500
$
557,500
$
827,500
Birch Company
239,000
360,750
523,200
Cedar Company
Not available
235,200
310,200
Expenses:
Aspen Company
$
400,000
$
437,500
$
522,500
Birch Company
177,000
286,000
435,000
Cedar Company
Not available
216,000…
On January 1, 2019, Aspen Company acquired 80 percent of Birch Company's voting stock for $500,000. Birch reported a $490,000
book value, and the fair value of the noncontrolling interest was $125,000 on that date. Then, on January 1, 2020, Birch acquired 80
percent of Cedar Company for $224,000 when Cedar had a $253,000 book value and the 20 percent noncontrolling interest was
valued at $56,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name
with a 30-year remaining life.
These companies report the following financial information. Investment income figures are not included.
Sales:
Aspen Company
Birch Company
Cedar Company
Expenses:
Aspen Company
Birch Company
Cedar Company
Dividends declared:
Aspen Company
Birch Company
Cedar Company
2021
$ 637,500 $ 650,000 $ 732,500
269,500
356,750
588,300
Not available. 193,300
295, 200
2019
$ 402, 500
215,000
Not available.
$ 20,000 $
5,000
Not available
2020
$ 645,000 $ 577,500…
Chapter 7 Solutions
Advanced Accounting
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 26P
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