Questions from Advanced Accounting

Q: Plantation Homes Company is considering the acquisition of Condominiums, Inc.

Plantation Homes Company is considering the acquisition of Condominiums, Inc. early in 2015. To assess the amount, it might be willing to pay, Plantation Homes makes the following computations and ass...

Q: Poco Company purchased 80% of Solo Company’s common stock on January

Poco Company purchased 80% of Solo Company’s common stock on January 1, 2012, for $250,000. On December 31, 2012, the companies prepared the following trial balances: Required: P...

Q: The following accounts appeared in the separate financial statements at the end

The following accounts appeared in the separate financial statements at the end of 2014 for Pressing Inc. and its wholly-owned subsidiary, Stressing Inc. Stressing was acquired in 2009. Required: 1....

Q: Badco Inc. purchased a 90% interest in Lazytoo Company for

Badco Inc. purchased a 90% interest in Lazytoo Company for $600,000 cash on January 1, 2016. Any excess of implied over book value was attributed to depreciable assets with a 15-year remaining life (s...

Q: On January 1, 2014, Plenty Company purchased a 70%

On January 1, 2014, Plenty Company purchased a 70% interest in the common stock of Set Company for $650,000, an amount $20,000 in excess of the book value of equity acquired. The excess relates to the...

Q: Park Company purchased 90% of the stock of Salt Company on

Park Company purchased 90% of the stock of Salt Company on January 1, 2014, for $465,000, an amount equal to $15,000 in excess of the book value of equity acquired. This excess payment relates to an u...

Q: At the beginning of 2009, Presidio Company purchased 95% of

At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo Company for $494,000. On that date, Succo Company’s stockholders’ equity consisted of the following: Common stoc...

Q: Poco Company purchased 85% of the outstanding common stock of

Poco Company purchased 85% of the outstanding common stock of Serena Company on December 31, 2014, for $310,000 cash. On that date, Serena Company’s stockholders’ equity consisted of the following:...

Q: On January 1, 2014, Plate Company purchased a 90

On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $650,000, an amount $20,000 in excess of the book value of equity acquired. The excess relates to the...

Q: On January 1, 2014, Pert Company purchased 85% of

On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000. On that date, Sales Company’s stockholders’ equity consisted of common stock, $100,000; ot...