Questions from Financial Reporting

Q: Lexington Corporation acquired all of the outstanding common stock of Chalfont,

Lexington Corporation acquired all of the outstanding common stock of Chalfont, Inc., on January 1, 2016. Lexington gave shares of its no par common stock with a market value of $504 million in exchan...

Q: Exhibit 3.32 presents a statement of cash flows for Walmart

Exhibit 3.32 presents a statement of cash flows for Walmart for fiscal 2015, 2014, and 2013. This statement matches the Walmart statement of cash flows in Appendix A, and is an expanded version of the...

Q: Ormond Co. acquired all of the outstanding common stock of Daytona

Ormond Co. acquired all of the outstanding common stock of Daytona Co. on January 1, 2017. Ormond Co. gave shares of its common stock with a fair value of $312 million in exchange for 100% of the Dayt...

Q: On December 31, 2017, Pace Co. paid $3

On December 31, 2017, Pace Co. paid $3,000,000 to Sanders Corp. shareholders to acquire 100% of the net assets of Sanders Corp. Pace Co. also agreed to pay former Sanders shareholders $200,000 in cash...

Q: Exhibit 8.26 presents the separate financial statements at December 31

Exhibit 8.26 presents the separate financial statements at December 31, 2018, of Prestige Resorts and its 80%-owned subsidiary Booking, Inc. Two years earlier on January 1, 2017, Prestige acquired 80%...

Q: Foreign Sub is a wholly owned subsidiary of U.S.

Foreign Sub is a wholly owned subsidiary of U.S. Domestic Corporation. U.S. Domestic Corporation acquired the subsidiary several years ago. The financial statements for Foreign Sub for 2017 in its own...

Q: Stebbins Corporation established a wholly owned Canadian subsidiary on January 1,

Stebbins Corporation established a wholly owned Canadian subsidiary on January 1, Year 1, by contributing US$500,000 for all of the subsidiary’s common stock. The exchange rate on th...

Q: Refer to Problem 8.25 for Stebbins Corporation for Year 1

Refer to Problem 8.25 for Stebbins Corporation for Year 1, its first year of operations. Exhibit 8.31 shows the amounts for the Canadian subsidiary for Year 2. The average exchange rate during Year 2...

Q: On January 1, 2017, assume that Turner Construction Company agreed

On January 1, 2017, assume that Turner Construction Company agreed to construct an observatory for Dartmouth College for $120 million. Dartmouth College must pay $60 million upon signing and $30 milli...

Q: A large manufacturer of truck and car tires recently changed its cost

A large manufacturer of truck and car tires recently changed its cost-flow assumption method for inventories at the beginning of 2017. The manufacturer has been in operation for almost 40 years, and f...