Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2012. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2012, Sea-Breeze had the following assets and liabilities:
The companies’ financial statements for the year ending December 31, 2015, follow:
Answer the following questions:
a. How can the accountant determine that the parent has applied the initial value method?
b. What is the annual excess amortization initially recognized in connection with this acquisition?
c. If the parent had applied the equity method, what investment income would the parent have recorded in 2015?
d. What is the parent’s portion of consolidated retained earnings as of January 1, 2015?
e. What is consolidated net income for 2015 and what amounts are attributable to the controlling and noncontrolling interests?
f. Within consolidated statements at January 1, 2012, what balance is included for the subsidiary’s Buildings account?
g. What is the consolidated Buildings reported balance as of December 31, 2015?
Draw an indifference curve and its weakly preferred set for two goods that exhibit following preferences: 1. monotonic and convex preferences 2. monotonic and concave pre...May 04 2020
The volume of a frustum of a cone is given by the formula where x is the radius of the smaller circle, y is the radius of the larger circle and z is the height of the fr...Jul 13 2021
Suppose the government applies a specific tax to a good where the demand elasticity, e, is - 1.1, and the supply elasticity, 7, is 0.6. If a specific tax, T, of $2.75 wer...Jun 10 2021
Is it better for a firm's actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoints of stock...Jun 02 2021
Pearson Brothers recently reported an EDITDA of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40 pe...May 16 2018
Describe the region whose area is given by the integralJul 06 2021
• Retail strategies • The retail marketing mix • The contribution of the retail environment and the retail experience to customer satisfaction • On-line retailing and oth...Jul 24 2020
Why is it important (in the context of system engineering) to become familiar with some of the analytical methods identified in Section 4.2? Provide some specific example...May 26 2020
Instead, assume that the restructuring is completed and Martinis now 20% debt and 80% common equity. But the after tax cost ofdebt is 9% and the cost of common equity is1...Dec 04 2019
If the supply curve shifts outward (to the right), consumer surplus will:Jun 12 2021