Exam 3: A: Consolidations - Subsequent to the Date of Acquisition

If Watkins pays $450,000 in cash for Glen, and Glen earns $50,000 in net income and pays $20,000 in dividends during 2017, what amount representing Glen would be reflected in consolidated net income for the year ended December 31, 2017?

If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary's Equipment in consolidation at December 31, 2019?

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

When is a goodwill impairment loss recognized?

Assume the partial equity method is used.In the years following acquisition, what additional worksheet entry must be made for consolidation purposes, but is not required for the equity method?

With respect to the recognition of goodwill in a business combination, which of the following statements is true?

Compute the amount of Hurley's inventory that would be reported in a January 1, 2017, consolidated balance sheet.

What is the basic objective of all consolidations?

Compute the December 31, 2020, consolidated land.

Under the partial equity method, the parent recognizes income when

What should an entity evaluate when making an initial impairment assessment of an intangible asset (other than goodwill)?

What is the amount of consolidated net income for the year 2017?

On April 1, 2018, Beatty stock closes with a market value of $8.98 per share.How many shares of stock, rounded to the next whole number, must it issue to the former owners of Gateax?

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?

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 trademark.

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

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

Determine the amortization expense related to the combination at the year-end date of 12/31/16.

Compute the amount of Hurley's buildings that would be reported in a December 31, 2017, consolidated balance sheet.