Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 9, Problem 9.17.5P
To determine
To choose:the correct answer
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On January 1, 20X2, Power Company acquired 80 percent of Strong Company's outstanding stock for cash. The fair value
of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the
date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows:
Total Assets
Liabilities
Common Stock
Retained Earnings
Total Liabilities & Stockholders' Equity
Multiple Choice
O
$35,200
Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Power Company's December 31, 20X2, consolidated balance sheet?
$48,200
$76,800
Power
$ 564,000
O $112,800
180,000
150,000
234,000
$ 564,000
Strong
$ 216,000
65,000
80,000
96,000
$ 241,000
Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Forest's assets
and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at
the time of exchange. Following selected information is also available.
Par value of shares outstanding
Additional Paid-in Capital
Before Acquisition
P400,000
P700,000
After Acquisition
P500,000
P1,100,000
Based on the proceeding information, what is the number of shares was issued at the time of the exchange?
25,000
35,000
20,000
10,000
The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.:
Cash
P 108,000
Accounts Receivable
1,371,000
Inventories
360,000
PPE
1,948,200
Accounts Payable
1,052,400
Kingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market values
of investment and PPE were P399,000 and P2,700,000, respectively.
An assumed contingent liability arising from past events with a fair value amounting…
Required Information
[The following information applies to the questions displayed below.]
Apple Corporation acquires 80 percent of Berry Corporation's common shares on January 1, 20X2. On
January 2, 20X2, Berry acquires 60 percent of Coco Corporation's common stock. Information on company
book values on the date of purchase and operating results for 20X2 is as follows:
Company
Apple Corporation
Berry Corporation
Coco Corporation
Required:
Select the correct answer for each of the following questions.
Multiple Choice
The fair values of the noncontrolling interests of Berry and Coco at the dates of acquisition were $60,000 and
$80,000, respectively.
O $22,000.
Book Value
$ 800,000
300,000
200,000
O $46,000.
Purchase Price
$ 240,000
120,000
4. The amount of income assigned to the noncontrolling interest in the 20X2 consolidated income statement is:
O $42.000.
$20,000.
28X2 Operating Income
$ 100,000
80,000
50,000
Chapter 9 Solutions
Advanced Financial Accounting
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - Prob. 9.11QCh. 9 - Prob. 9.12QCh. 9 - Prob. 9.13QCh. 9 - Prob. 9.14QCh. 9 - Prob. 9.15QCh. 9 - Prob. 9.16QCh. 9 - Prob. 9.1CCh. 9 - Prob. 9.2CCh. 9 - Prob. 9.3CCh. 9 - Prob. 9.4CCh. 9 - Prob. 9.5CCh. 9 - Prob. 9.1.1ECh. 9 - Prob. 9.1.2ECh. 9 - Prob. 9.1.3ECh. 9 - Prob. 9.1.4ECh. 9 - Prob. 9.2.1ECh. 9 - Prob. 9.2.2ECh. 9 - Prob. 9.2.3ECh. 9 - Prob. 9.2.4ECh. 9 - Prob. 9.2.5ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Subsidiary Stock Dividend Stake Company reported...Ch. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17.1PCh. 9 - Prob. 9.17.2PCh. 9 - Prob. 9.17.3PCh. 9 - Prob. 9.17.4PCh. 9 - Prob. 9.17.5PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26PCh. 9 - Prob. 9.27P
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