Home / Questions / Pun Corporation acquired 80 percent of Set Corporation’s preferred stock for $175000 and ...
Pun Corporation acquired 80 percent of Set Corporation’s preferred stock for $175,000 and 90 percent of Set’s common stock for $630,000 on July 1, 2011. Set’s stockholders’ equity on December 31, 2011, was as follows (in thousands):
Stockholders’ Equity
9% preferred stock, cumulative, nonparticipating,
$100 par, call price $105 ………………………… $200
Common stock, $10 par …………………………………… 500
Paid-in capital in excess of par ……………………………… 40
Retained earnings …………………………………………… 160
Total stockholders’ equity …………………………………. $900
Set had net income of $24,000 in 2010 and $46,000 in 2011, but declared no dividends in either year. Assume that preferred dividends accrue ratably throughout each year and that Set’s net assets were fairly valued on July 1, 2011.
REQUIRED
1. Determine the account balances of Pun Corporation’s investments in Set’s preferred and common stocks at December 31, 2011, on the basis of a one-line consolidation.
2. Prepare workpaper entries to consolidate the balance sheets of Pun and Set at December 31, 2011.
Jun 18 2020 View more View Less
A friend says that she expects to earn 12.00% on her portfolio with a beta of 2.25. You have a two-asset portfolio including stock X and a risk-free security. The expecte...
Jul 04 2021(a) What are the current yield on a three-year bond whose face value is $1000 with a coupon rate of 6% per year and a price of $900? (1) 6.00% (2)6.67% (3) 10.00% (4) 1...
Aug 11 2021Use a selected company or your current work environment to Use a selected company or your current work environment to identify at least one cost or expense that would fi...
Apr 01 2020When You Permanently Reduced the Shipping Spots to Zero, You "Terminated" the Contract, SillyC.A. Acquisition Newco LLC is a successor in interest to Cyphermint, Inc. (or...
Aug 12 2021If 2 quadrilaterals have the same perimeter, do they have the same area? Give an example to support your answer.
Jun 11 2021Explain briefly the regulatory influences on pricing
Apr 20 2021The Globe Fishery packs shrimp that weigh more than 1.91 ounces each in packages marked" large"and shrimp that weigh less than 0.47 ounces each into packages marked "smal...
Apr 16 2020Ceteris paribus, economies with more equal income distribution will grow faster that economies with less income equality. This statement is a. undeniably true b. positive...
Jun 04 2021Find the centroid of the region bounded by the curves Sketch the region and plot the centroid to see if your answer is reasonable.
Jul 08 2021Keisha has been inundated with product-of-the-month offers from various marketing companies. She is considering joining a club that allows DVDs to be downloaded from a me...
Aug 01 2020