On January 1, 2014, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sheet:
At the acquisition date, Strata’s buildings had a 10-year remaining life and its licensing agreements were due to expire in 5 years. At December 31, 2015, Strata’s accounts payable included an $85,000 current liability owed to Pinnacle. Strata Corporation continues its separate legal existence as a wholly owned subsidiary of Pinnacle with independent accounting records. Pinnacle employs the initial value method in its internal accounting for its investment in Strata. The separate financial statements for the two companies for the year ending December 31, follow. Credit balances are indicated by parentheses.
a. Prepare a worksheet to consolidate the financial information for these two companies.
b. Compute the following amounts that would appear on Pinnacle’s 2015 separate (nonconsolidated) financial records if Pinnacle’s investment accounting was based on the equity method.
• Subsidiary income.
• Retained earnings 1/1/15.
• Investment in Strata.
c. What effect does the parent’s internal investment accounting method have on its consolidated financial statements?
Four equal point charges of q= 6.78 nC are placed at equal distances of a=1.63 cm from the origin, as shown in the figure. Find the the electric potential (in V) at the o...May 28 2021
Casperâ€™s utility function is 3x + y, where x is his consumption of cocoa and y is his consumption of cheese. If the total cost of x units of cocoa is x squared (x^2), t...May 04 2020
Visit at least two of the social media profiles. What content does the website promote using social media? Did the social media presence enhance the website content?Jun 21 2021
Some employment authors claim that the paper résumé is dead or dying. What's behind this assertion, and how should current job candidates respond?Aug 23 2021
Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raid...Aug 21 2021
You are the new head of corporate security for a large Fortune 1000 company and are alarmed at the number of laptop computers your firm’s employees lose each month. What ...Jul 15 2020
Mia puts money into a piggy bank so she can spend it later. What function of money does this illustrate? A. store of value B. medium of exchange C. unit of...Jun 15 2018
Gross Domestic Product is a dollar measure of a. total investment in an economy b. total industrial output in any given time period c. the value of all final goods and se...Jul 12 2021
The following table gives the per-capital income in hundred dollars and the percentage of the economy represented by agriculture for some countries Question 3 The follo...Feb 07 2020
The law of demand results from which two patterns of behavior?Jun 05 2021