Exam 4: Consolidated Financial Statements and Outside Ownership

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Prevatt, Inc.owns 80% of Franklin Company.During the current year, a portion of the investment in Franklin is sold.Prior to recording the sale, Prevatt adjusts the carrying value of its investment.What is the purpose of the adjustment?

(Essay)

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Question 81

Determine the amount of goodwill to be recognized in this acquisition.

(Essay)

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Question 82

Compute the noncontrolling interest in Demers at December 31, 2019.

(Multiple Choice)

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Question 83

Compute Pell's Investment in Demers account balance at December 31, 2019.

(Multiple Choice)

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Question 84

All of the following statements regarding the sale of subsidiary shares are true except which of the following?

(Multiple Choice)

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Question 85

Prepare a schedule to determine goodwill, and the amortization and allocation amounts.

(Essay)

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Question 86

Which of the following methods is not used to value a noncontrolling interest under circumstances where a control premium is applied to determine the appropriate value for such interest?

(Multiple Choice)

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Question 87

In a step acquisition, which of the following statements is false?

(Multiple Choice)

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Question 88

What amount of goodwill should be attributed to the noncontrolling interest at the date of acquisition?

(Multiple Choice)

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Question 89

What is the consolidated balance of the Equipment account at December 31, 2020?

(Multiple Choice)

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Question 90

What is the total amount of goodwill recognized at the date of acquisition?

(Multiple Choice)

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Question 91

Why is it important to know if the parent paid a premium to acquire control of a subsidiary?

(Essay)

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Question 92

Compute Pell's income from Demers for the year ended December 31, 2019.

(Multiple Choice)

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Question 93

What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date?

(Multiple Choice)

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Question 94

Which of the following statements is true regarding the sale of subsidiary shares when using the acquisition method for accounting for business combinations?

(Multiple Choice)

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Question 95

Compute Pell's investment in Demers at December 31, 2019.

(Multiple Choice)

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Question 96

Compute the noncontrolling interest in Demers at December 31, 2021.

(Multiple Choice)

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Question 97

When consolidating a subsidiary that was acquired on a date other than the first day of the fiscal year, which of the following statements is true of the subsidiary with respect to the presentation of consolidated financial statement information?

(Multiple Choice)

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Question 98

In consolidation at January 1, 2019, what adjustment is necessary for Hogan's Land account?

(Multiple Choice)

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Question 99

Compute the noncontrolling interest in the net income of Demers at December 31, 2021.

(Multiple Choice)

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Question 100

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Exam 4: Consolidated Financial Statements and Outside Ownership

Prevatt, Inc.owns 80% of Franklin Company.During the current year, a portion of the investment in Franklin is sold.Prior to recording the sale, Prevatt adjusts the carrying value of its investment.What is the purpose of the adjustment?

Determine the amount of goodwill to be recognized in this acquisition.

Compute the noncontrolling interest in Demers at December 31, 2019.

Compute Pell's Investment in Demers account balance at December 31, 2019.

All of the following statements regarding the sale of subsidiary shares are true except which of the following?

Prepare a schedule to determine goodwill, and the amortization and allocation amounts.

Which of the following methods is not used to value a noncontrolling interest under circumstances where a control premium is applied to determine the appropriate value for such interest?

In a step acquisition, which of the following statements is false?

What amount of goodwill should be attributed to the noncontrolling interest at the date of acquisition?

What is the consolidated balance of the Equipment account at December 31, 2020?

What is the total amount of goodwill recognized at the date of acquisition?

Why is it important to know if the parent paid a premium to acquire control of a subsidiary?

Compute Pell's income from Demers for the year ended December 31, 2019.

What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date?

Which of the following statements is true regarding the sale of subsidiary shares when using the acquisition method for accounting for business combinations?

Compute Pell's investment in Demers at December 31, 2019.

Compute the noncontrolling interest in Demers at December 31, 2021.

When consolidating a subsidiary that was acquired on a date other than the first day of the fiscal year, which of the following statements is true of the subsidiary with respect to the presentation of consolidated financial statement information?

In consolidation at January 1, 2019, what adjustment is necessary for Hogan's Land account?

Compute the noncontrolling interest in the net income of Demers at December 31, 2021.

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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