Exam 3: Consolidations - Subsequent to the Date of Acquisition

What is the partial equity method? How does it differ from the equity method? What are its advantages and disadvantages compared to the equity method?

Compute the December 31, 2020, consolidated additional paid-in capital.

One company acquires another company in a combination accounted for under the acquisition method.The acquiring company decides to apply the initial value method in accounting for the combination.What is one reason the acquiring company might have made this decision?

Under the partial equity method, the parent recognizes income when

Compute the December 31, 2020, consolidated common stock.

If Utah paid $300,000 in cash for Trimmer, what allocation and amortization should have been assigned to the subsidiary's Building account and its Equipment account in a December 31, 2018 consolidation?

If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

When consolidating a subsidiary under the equity method, which of the following statements is true with regard to the subsidiary subsequent to the year of acquisition?

Jansen Inc.acquired all of the outstanding common stock of Merriam Co.on January 1, 2017, for $257,000.Annual amortization of $19,000 resulted from this acquisition.Jansen reported net income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in dividends each year.Merriam reported net income of $40,000 in 2017 and $47,000 in 2018 and paid $10,000 in dividends each year.What is the Investment in Merriam Co.balance on Jansen's books as of December 31, 2018, if the equity method has been applied?

With respect to identifiable intangible assets other than goodwill, which of the following is true?

Which of the following will result in the recognition of an impairment loss on goodwill?

Prince Company acquires Duchess, Inc.on January 1, 2016.At the date of acquisition, Duchess has long-term debt with a fair value of $1,500,000 and a carrying amount of $1,200,000. With respect to long-term debt consolidation worksheet adjustments in periods following the acquisition, which of the following is correct:

Assume the initial value method is applied.How much equity income will Kaye report on its internal accounting records as a result of Fiore's operations?

Compute goodwill, if any, at January 1, 2017.

Compute the book value of Vega at January 1, 2016.

Which of the following internal record-keeping methods can a parent choose to account for a subsidiary acquired in a business combination?

If the equity method had been applied, what would be the Investment in Tysk Corp.account balance within the records of Jans at the end of 2018?

The 2017 total excess amortization of fair-value allocations is calculated to be

If Cale Corp.had net income of $444,000 in 2017, exclusive of the investment, what is the amount of consolidated net income?

Dutch Co.has loaned $90,000 to its subsidiary, Hans Corp., which retains separate incorporation.How would this loan be treated on a consolidated balance sheet?