- Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent of Company Essthree. Consolidated financial statements should be prepared to report the financial status and results of operations for:
A. Pea.
B. Pea plus Essone.
C. Pea plus Essone plus Esstwo.
D. Pea plus Essone plus Esstwo plus Essthree.
- Xing Corporation owns 80 percent of the voting common shares of Adams Corporation. Noncontrolling interest was assigned $24,000 of income in the 2009 consolidated income statement. What amount of net income did Adams Corporation report for the year?
A. $150,000
B. $96,000
C. $120,000
D. $30,000
- On December 31, 2009, Rudd Company acquired 80 percent of the common stock of Wilton Company. At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. Using the parent company theory, at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A. $550,000
B. $590,000
C. $700,000
D. $860,000
- Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2009. On the date of acquisition, Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000. Using the entity theory, at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A. $650,000
B. $500,000
C. $550,000
D. $375,000
- If Push Company owned 51 percent of the outstanding common stock of Shove Company, which reporting method would be appropriate?
A. Cost method
B. Consolidation
C. Equity method
D. Merger method
- Under FASB 141R, consolidation follows largely which theory approach?
A. Proprietary
B. Parent company
C. Entity
D. Variable
- Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent of Company Essthree. Consolidated financial statements should be prepared to report the financial status and results of operations for:
A.Pea.
B. Pea plus Essone.
C. Pea plus Essone plus Esstwo.
D. Pea plus Essone plus Esstwo plus Essthree.
- Xing Corporation owns 80 percent of the voting common shares of Adams Corporation. Noncontrolling interest was assigned $24,000 of income in the 2009 consolidated income statement. What amount of net income did Adams Corporation report for the year?
A.$150,000
B. $96,000
C. $120,000
D. $30,000
- On December 31, 2009, Rudd Company acquired 80 percent of the common stock of Wilton Company. At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. Using the parent company theory, at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A.$550,000
B. $590,000
C. $700,000
D. $860,000
- Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31, 2009. On the date of acquisition, Princeton held land with a book value of $150,000 and a fair value of $300,000; Sheffield held land with a book value of $100,000 and fair value of $500,000. Using the entity theory, at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A.$650,000
B. $500,000
C. $550,000
D. $375,000
- If Push Company owned 51 percent of the outstanding common stock of Shove Company, which reporting method would be appropriate?
A.Cost method
B. Consolidation
C. Equity method
D. Merger method
- Under FASB 141R, consolidation follows largely which theory approach?
A.Proprietary
B. Parent company
C. Entity
D. Variable
