Exam 6: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Assuming Involved's accounts are correctly valued within the company's financial statements, what amount of goodwill should be recognized for the Investment in Involved?

Pursley, Inc.owns 70 percent of Harry Corp.The consolidated income statement for a year reports $50,000 Noncontrolling Interest in Harry Corp.'s Net Income.Harry paid dividends in the amount of $80,000 for the year.What are the effects of these transactions in the consolidated statement of cash flows for the year?

On January 1, 2018, Parent Corporation acquired a controlling interest in the voting common stock of Foxboro Co.At the same time, Parent purchased sixty percent of Foxboro's outstanding preferred stock.In preparing consolidated financial statements, how should the acquisition of the preferred stock be accounted for?

What is the controlling interest share of Thomas' net income for the year ended December 31, 2018?

What consolidation entry would be recorded in connection with these intra-entity bonds on December 31, 2021?

After acquiring the additional shares, what adjustment is needed for Webb's investment in Jones account?

After acquiring the additional shares, what adjustment is needed for Ryan's investment in Chase account?

Net cash flow from operating activities was:

Regency Corp.recently acquired $500,000 of the bonds of Safire Co., one of its subsidiaries, paying more than the carrying value of the bonds.According to the most practical view of this intra-entity transaction, to whom should the loss be attributed?

What amount should be attributed to the Noncontrolling Interest in Garvin Co.following the sale of the 10,000 shares of common stock?

What is the total acquisition-date fair value of Involved?

How do intra-entity transfers of inventory affect the preparation of a consolidated statement of cash flows?

What adjustment is needed for Webb's investment in Jones account?

What is the amount of goodwill resulting from this acquisition?

Net cash flow from operating activities was:

What balances would need to be considered in order to prepare the consolidation entry in connection with these intra-entity bonds at December 31, 2019, the end of the first year of the intra-entity investment? Prepare schedules to show numerical answers for balances that would be needed for the entry.

Which of the following statements is false concerning variable interest entities (VIEs)?

Parent Corporation acquired some of its subsidiary's bonds on the open bond market, paying a price $40,000 higher than the bonds' carrying value.How should the difference between the purchase price and the carrying value be accounted for?

All of the following are examples of variable interests except:

What was the noncontrolling interest's share of consolidated net income for the year 2018?