Parent company acquired 90% of son inc. on january 31, 20x2 in exchange for cash. the book value of son's individual assets and liabilities approximated their acquisition-date fair values. on the date of acquisition, son reported the following: cash $ 350,000 current liabilities $ 120,000 inventory 100,000 plant assets (net) 320,000 common stock 100,000 property 500,000 retained earnings 1,050,000 total assets $ 1,270,000 total liabilities & equity $ 1,270,000 during the year son inc. reported $310,000 in net income and declared $15,000 in dividends. parent company reported $520,000 in net income and declared $25,000 in dividends. parent accounts for their investment using the equity method. required: 1) what journal entry will parent make on the date of acquisition to record the investment in son inc.? 2) if parent were to prepare a consolidated balance sheet on the acquisition date (january 31, 20x2), what is the basic consolidation entry parent would use in the consolidation worksheet? 3) what is parent's balance in "investment in son inc." prior to consolidation on december 31, 20x2? 4) what is the basic consolidation entry parent would use in the consolidation worksheet on december 31, 20x2?
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Business, 21.06.2019 22:30
Chip wilson has hired goldman sachs, an investment banking company, to assist him with a hostile takeover of lululemon. wilson's goal is to hire a new board of directors because he believes there is a need for a more long-term focus. goldman sachs is a proven firm at making a profit in every move that they make. if the hostile takeover does not pan out, what could be another motive for investors?
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Business, 22.06.2019 02:20
Larissa has also provided the following information. during the year, the company raised $36 million in new long-term debt and retired $20.52 million in long-term debt. the company also sold $22 million in new stock and repurchased $32.4 million. the company purchased $54 million in fixed assets, and sold $6,107,400 in fixed assets. larissa has asked dan to prepare the financial statement of cash flows and the accounting statement of cash flows. she has also asked you to answer the following questions: 1. how would you describe east coast yachts' cash flows? 2. which cash flows statement more accurately describes the cash flows at the company? 3. in light of your previous answers, comment on larissa's expansion plans.
Answers: 2
Business, 22.06.2019 05:20
Social computing forces companies to deal with customers as opposed to
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Parent company acquired 90% of son inc. on january 31, 20x2 in exchange for cash. the book value of...
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