Exam 8: Consolidated Cash Flows and Changes in Ownership

Parrot has no contributed surplus on its own balance sheet as at the end of 2019. Calculate the amount of the contributed surplus shown on the consolidated balance sheet of Parrot and its subsidiary as at December 31, 2019.

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Question 1

Correct Answer:

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$\begin{array} { | l | l | } \hline \text { Amount paid tor preferred shares } & \$ 105,000 \\\hline \text { Carrying value of } 50 \% \text { of preferred shares at acquisition } & 118,000 \\\hline \text { Contributed surplus } & \$ \mathbf { 1 3 , 0 0 0 } \\\hline & \\\hline\end{array}$

If the shareholders' equity allocated to the subsidiary's preference shares amounts to $240,000 and the parent company acquires 60% of the subsidiary's preference shares at a cost of $150,000, how much will the amount of cash on the consolidated balance sheet change as a result of this transaction?

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Question 2

Correct Answer:

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D

A Inc. owns 80% of B's outstanding voting shares. Under which of the following scenarios would A's ownership percentage of B change?

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Question 3

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C

What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2018 after the issue of shares to Chompster?

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Question 4

What is the amount of the acquisition differential amortization (excluding goodwill impairment) for 2019?

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Question 5

What is the amount of Goodwill that arose from P's investment in Q?

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Question 6

What percentage of its Investment in 123 was sold by ABC?

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Question 7

What would be the amount of cash appearing on Whine's December 31, 2018 consolidated balance sheet (after the issue of shares to Chompster)?

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Question 8

What would be the amount of the unamortized acquisition differential (excluding goodwill) at the end of 2019?

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Question 9

What is the correct method of treating an acquisition differential arising from a Preferred Share Issue?

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Question 10

What is the amount of the acquisition differential amortization for 2018 (excluding goodwill impairment)?

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Question 11

What percentage of Marvin's shares was purchased by Hanson on January 1, 2018?

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Question 12

Prepare Lime's December 31, 2017 Consolidated Balance Sheet.

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Question 13

What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2018 before the issue of shares to Chompster?

(Multiple Choice)

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Question 14

What would be the gain or loss arising from Dine's share issue to Chompster?

(Multiple Choice)

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Question 15

What is the amount of the non-controlling interest at acquisition?

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Question 16

What effect would the purchase at January 1, 2019 have on the consolidated equity of Hanson?

(Multiple Choice)

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Question 17

Assuming that Hanson had no recorded goodwill prior to January 1, 2018, what would be the amount of goodwill appearing on Hanson's December 31, 2018 consolidated balance sheet?

(Multiple Choice)

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Question 18

What is the amount of goodwill arising from this business combination?

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Question 19

How much of the acquisition differential was allocated to patents?

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Question 20

Parrot has no contributed surplus on its own balance sheet as at the end of 2019. Calculate the amount of the contributed surplus shown on the consolidated balance sheet of Parrot and its subsidiary as at December 31, 2019.

If the shareholders' equity allocated to the subsidiary's preference shares amounts to $240,000 and the parent company acquires 60% of the subsidiary's preference shares at a cost of $150,000, how much will the amount of cash on the consolidated balance sheet change as a result of this transaction?

A Inc. owns 80% of B's outstanding voting shares. Under which of the following scenarios would A's ownership percentage of B change?

What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2018 after the issue of shares to Chompster?

What is the amount of the acquisition differential amortization (excluding goodwill impairment) for 2019?

What is the amount of Goodwill that arose from P's investment in Q?

What percentage of its Investment in 123 was sold by ABC?

What would be the amount of cash appearing on Whine's December 31, 2018 consolidated balance sheet (after the issue of shares to Chompster)?

What would be the amount of the unamortized acquisition differential (excluding goodwill) at the end of 2019?

What is the correct method of treating an acquisition differential arising from a Preferred Share Issue?

What is the amount of the acquisition differential amortization for 2018 (excluding goodwill impairment)?

What percentage of Marvin's shares was purchased by Hanson on January 1, 2018?

Prepare Lime's December 31, 2017 Consolidated Balance Sheet.

What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2018 before the issue of shares to Chompster?

What would be the gain or loss arising from Dine's share issue to Chompster?

What is the amount of the non-controlling interest at acquisition?

What effect would the purchase at January 1, 2019 have on the consolidated equity of Hanson?

Assuming that Hanson had no recorded goodwill prior to January 1, 2018, what would be the amount of goodwill appearing on Hanson's December 31, 2018 consolidated balance sheet?

What is the amount of goodwill arising from this business combination?

How much of the acquisition differential was allocated to patents?

Conceptual and Case Analysis Frameworks for Financial Reporting

Investments in Equity Securities

Business Combinations

Consolidation of Non-Wholly Owned Subsidiaries

Consolidation Subsequent to Acquisition Date

Intercompany Inventory and Land Profits

A Intercompany Profits in Depreciable Assets B Intercompany Bondholdings

Other Consolidation Reporting Issues

Foreign Currency Transactions

Translation and Consolidation of Foreign Operations

Accounting for Not-For-Profit and Public Sector Organizations

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