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.
February 6, 2020 Comments Off on 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. Statistics Assignment help
  1. 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?
  2. What      effect will a subsidiary’s 15% stock dividend have on the consolidated      financial statements?
  3. 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?
  4. 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?
  5. How      will parent company shares held by a subsidiary be reflected in the      consolidated balance sheet when the treasury stock method is used?
  6. 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?
  7. 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?
  8. What      factors would cause an acquirer to include deferred tax assets and      liabilities in the net identifiable assets acquired?
  9. 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?
  10. How do      unrealized profits on intercompany transfers affect the amount reported as      income tax expense in the consolidated financial statements?
  11. How      are dividends paid to the parent’s preferred shareholders and to the      subsidiary’s preferred shareholders in computing consolidated EPS?
  12. 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?
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