Explain the effect will a subsidiary’s 15% stock dividend have on the consolidation entries used in preparing a consolidated balance sheet at the end of the year in which the dividend is distributed.
- What effect will a subsidiary’s 15% stock dividend have on the consolidation entries used in preparing a consolidated balance sheet at the end of the year in which the dividend is distributed?
- What effect will a subsidiary’s 15% stock dividend have on the consolidated financial statements?
- S Corporation holds 70% ownership of B Company, and B Company holds 60% of P Company. Should P Company be consolidated with S Company? Why or why not?
- P Company holds 80% percent ownership of S Company, and S Company owns 90% of the stock of T Company. What effect will $100,000 of unrealized company profits on T’s books on December 31, 20X5 have on the amounts reported as consolidated net income and income assigned to the controlling interest?
- How will parent company shares held by a subsidiary be reflected in the consolidated balance sheet when the treasury stock method is used?
- Explain how a reciprocal ownership arrangement between two subsidiaries could lead the parent company to overstate its income if no adjustment is made for the reciprocal relationship?
- How do the consolidation entries at the end of the year change when an acquisition occurs at midyear rather than the beginning of the year?
- What factors would cause an acquirer to include deferred tax assets and liabilities in the net identifiable assets acquired?
- Are there any book-tax differences that may arise in an acquisition that does not require the inclusion of a deferred tax asset or liability in the net identifiable assets acquired?
- How do unrealized profits on intercompany transfers affect the amount reported as income tax expense in the consolidated financial statements?
- How are dividends paid to the parent’s preferred shareholders and to the subsidiary’s preferred shareholders in computing consolidated EPS?
- Why are payments to suppliers not shown in the statement of cash flows when the indirect method is used in presenting cash flows from operating activities?
Tags