Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 874 views

    REVIEW

    Uploaded by

    Ginn
    Parent Company acquired 90% ownership of Subsidiary Corporation. Subsidiary later purchased inventory from Parent for $90,000 and sold it to an unaffiliated company for $120,000, realizing a profit. Parent had produced the inventory for $62,000. The consolidated financial statements will report $120,000 in sales, $90,000 in cost of goods sold, and $58,000 in net income attributable to the controlling interest.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    REVIEW

    Uploaded by

    Ginn
    874 views7 pages
    Parent Company acquired 90% ownership of Subsidiary Corporation. Subsidiary later purchased inventory from Parent for $90,000 and sold it to an unaffiliated company for $120,000, realizing a profit. Parent had produced the inventory for $62,000. The consolidated financial statements will report $120,000 in sales, $90,000 in cost of goods sold, and $58,000 in net income attributable to the controlling interest.

    Original Description:

    Review for business combinations

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Parent Company acquired 90% ownership of Subsidiary Corporation. Subsidiary later purchased inventory from Parent for $90,000 and sold it to an unaffiliated company for $120,000, realizing a profit. Parent had produced the inventory for $62,000. The consolidated financial statements will report $120,000 in sales, $90,000 in cost of goods sold, and $58,000 in net income attributable to the controlling interest.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    874 views7 pages

    REVIEW

    Uploaded by

    Ginn
    Parent Company acquired 90% ownership of Subsidiary Corporation. Subsidiary later purchased inventory from Parent for $90,000 and sold it to an unaffiliated company for $120,000, realizing a profit. Parent had produced the inventory for $62,000. The consolidated financial statements will report $120,000 in sales, $90,000 in cost of goods sold, and $58,000 in net income attributable to the controlling interest.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    REVIEW



     On January 1, 2008, Parent Company acquired 90 percent ownership of
    Subsidiary Corporation, at underlying book value. The fair value of the
    noncontrolling interest at the date of acquisition was equal to 10 percent of the
    book value of Subsidiary Corporation. On Mar 17, 2008, Subsidiary purchased
    inventory from Parent for $90,000. Subsidiary sold the entire inventory to an
    unaffiliated company for $120,000 on November 21, 2008. Parent had produced
    the inventory sold to Subsidiary for $62,000. The companies had no other
    transactions during 2008.
     
     6. Based on the information given above, what amount of sales will be reported
    in the 2008 consolidated income statement? 
    A. $62,000
    B. $120,000
    C. $90,000
    D. $58,000

    On January 1, 2008, Parent Company acquired 90 percent ownership of
    Subsidiary Corporation, at underlying book value. The fair value of the
    noncontrolling interest at the date of acquisition was equal to 10 percent of
    the book value of Subsidiary Corporation. On Mar 17, 2008, Subsidiary
    purchased inventory from Parent for $90,000. Subsidiary sold the entire
    inventory to an unaffiliated company for $120,000 on November 21, 2008.
    Parent had produced the inventory sold to Subsidiary for $62,000. The
    companies had no other transactions during 2008.
    7. Based on the information given above, what amount of cost of goods sold
    will be reported in the 2008 consolidated income statement? 
    A. $62,000
    B. $120,000
    C. $90,000
    D. $58,000

    On January 1, 2008, Parent Company acquired 90 percent ownership of
    Subsidiary Corporation, at underlying book value. The fair value of the
    noncontrolling interest at the date of acquisition was equal to 10 percent of
    the book value of Subsidiary Corporation. On Mar 17, 2008, Subsidiary
    purchased inventory from Parent for $90,000. Subsidiary sold the entire
    inventory to an unaffiliated company for $120,000 on November 21, 2008.
    Parent had produced the inventory sold to Subsidiary for $62,000. The
    companies had no other transactions during 2008.
    8. Based on the information given above, what amount of consolidated net
    income will be assigned to the controlling shareholders for 2008? 
    A. $58,000
    B. $59,000
    C. $55,000
    D. $52,200

    Pilfer Company acquired 90 percent ownership of Scrooge Corporation in
    2007, at underlying book value. On that date, the fair value of
    noncontrolling interest was equal to 10 percent of the book value of Scrooge
    Corporation. Pilfer purchased inventory from Scrooge for $90,000 on August
    20, 2008, and resold 70 percent of the inventory to unaffiliated companies on
    December 1, 2008, for $100,000. Scrooge produced the inventory sold to
    Pilfer for $67,000. The companies had no other transactions during 2008.
    9. Based on the information given above, what amount of sales will be
    reported in the 2008 consolidated income statement? 
    A. $90,000
    B. $120,000
    C. $100,000
    D. $67,000

     Pilfer Company acquired 90 percent ownership of Scrooge Corporation in
    2007, at underlying book value. On that date, the fair value of
    noncontrolling interest was equal to 10 percent of the book value of
    Scrooge Corporation. Pilfer purchased inventory from Scrooge for $90,000
    on August 20, 2008, and resold 70 percent of the inventory to unaffiliated
    companies on December 1, 2008, for $100,000. Scrooge produced the
    inventory sold to Pilfer for $67,000. The companies had no other
    transactions during 2008.
    10. Based on the information given above, what amount of cost of goods
    sold will be reported in the 2008 consolidated income statement? 
    A. $60,900
    B. $90,000
    C. $46,900
    D. $67,000

     Pilfer Company acquired 90 percent ownership of Scrooge Corporation in
    2007, at underlying book value. On that date, the fair value of
    noncontrolling interest was equal to 10 percent of the book value of Scrooge
    Corporation. Pilfer purchased inventory from Scrooge for $90,000 on August
    20, 2008, and resold 70 percent of the inventory to unaffiliated companies on
    December 1, 2008, for $100,000. Scrooge produced the inventory sold to
    Pilfer for $67,000. The companies had no other transactions during 2008.
    12. Based on the information given above, what inventory balance will be
    reported by the consolidated entity on December 31, 2008? 
    A. $51,490
    B. $53,100
    C. $37,000
    D. $20,100

    You might also like