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23. Hardford Corp. held 80% of Inglestone Inc. which, in turn, owned 80% of
Jade Co.
Operating income
figures (without investment income) as well as
unrealized upstream gains
included in the income for the current year follow:
The
accrual-based income of Jade Co.
is calculated to be
24. Hardford Corp. held 80% of Inglestone Inc. which, in turn, owned 80% of
Jade Co.
Operating income
figures (without investment income) as well as
unrealized upstream gains
included in the income for the current year follow:
The
non-controlling interest in the net income of Jade Co.
is calculated to be
25. Hardford Corp. held 80% of Inglestone Inc. which, in turn, owned 80% of
Jade Co.
Operating income
figures (without investment income) as well as
unrealized upstream gains
included in the income for the current year follow:
The
non-controlling interest in the net income of Inglestone Inc.
is calculated to
be
26. When indirect control is present, which of the following statements is
true?
27. Which of the following statements is
false
concerning a father-son-
grandson configuration?
28. Which of the following statements is true regarding mutual ownership
between a parent and its subsidiary?
29. Which of the following statements is true regarding a subsidiary's
investment in the parent company's stock?
30. Which of the following statements is true regarding the subsidiary's
investment in its parent's common stock?
31. Which of the following statements is true regarding the filing of income
taxes for an affiliated group?
32. The benefits of filing a consolidated tax return include all of the following
except
33. Which of the following statements is true regarding goodwill?
34. Chase Company owns 80% of Lawrence Company and 40% of Ross
Company. Lawrence Company also owns 30% of Ross Company. Separate
operating incomes for 2011 of Chase, Lawrence, and Ross are $450,000,
$300,000, and $250,000, respectively. Each company also retains a $20,000
unrealized gain in their current income figures. Annual amortization expense of
$15,000 is assigned to Chase's investment in Lawrence and another $15,000 is
assigned to Lawrence's investment in Ross.
Compute Chase's attributed ownership in Ross.
35. Chase Company owns 80% of Lawrence Company and 40% of Ross
Company. Lawrence Company also owns 30% of Ross Company. Separate
operating incomes for 2011 of Chase, Lawrence, and Ross are $450,000,
$300,000, and $250,000, respectively. Each company also retains a $20,000
unrealized gain in their current income figures. Annual amortization expense of
$15,000 is assigned to Chase's investment in Lawrence and another $15,000 is
assigned to Lawrence's investment in Ross.
Compute the non-controlling interest in Ross' net income for 2011.
36. Chase Company owns 80% of Lawrence Company and 40% of Ross
Company. Lawrence Company also owns 30% of Ross Company. Separate
operating incomes for 2011 of Chase, Lawrence, and Ross are $450,000,
$300,000, and $250,000, respectively. Each company also retains a $20,000
unrealized gain in their current income figures. Annual amortization expense of
$15,000 is assigned to Chase's investment in Lawrence and another $15,000 is
assigned to Lawrence's investment in Ross.
Compute Lawrence's accrual-based income for 2011.
37. Chase Company owns 80% of Lawrence Company and 40% of Ross
Company. Lawrence Company also owns 30% of Ross Company. Separate
operating incomes for 2011 of Chase, Lawrence, and Ross are $450,000,
$300,000, and $250,000, respectively. Each company also retains a $20,000
unrealized gain in their current income figures. Annual amortization expense of
$15,000 is assigned to Chase's investment in Lawrence and another $15,000 is
assigned to Lawrence's investment in Ross.
Compute Chase's accrual-based income for 2011.
38. On January 1, 2010, Jones Company bought 15% of Whitton Company.
Jones paid $150,000 for these shares, an amount that exactly equaled the
proportionate book value of Whitton. On January 1, 2011, Whitton acquired 80%
ownership of Jones. The following data are available concerning Whitton's
acquisition of Jones:
Excess fair value over book value (assigned to trademarks) is amortized over 20
years.
The initial value method is used by both companies.
The following information is available regarding Jones and Whitton:
What would be included in a consolidation worksheet entry for 2011?
39. On January 1, 2010, Jones Company bought 15% of Whitton Company.
Jones paid $150,000 for these shares, an amount that exactly equaled the
proportionate book value of Whitton. On January 1, 2011, Whitton acquired 80%
ownership of Jones. The following data are available concerning Whitton's
acquisition of Jones:
Excess fair value over book value (assigned to trademarks) is amortized over 20
years.
The initial value method is used by both companies.
The following information is available regarding Jones and Whitton:
Compute the amount allocated to trademarks recognized in the January 1, 2011
consolidated balance sheet.
40. On January 1, 2010, Jones Company bought 15% of Whitton Company.
Jones paid $150,000 for these shares, an amount that exactly equaled the
proportionate book value of Whitton. On January 1, 2011, Whitton acquired 80%
ownership of Jones. The following data are available concerning Whitton's
acquisition of Jones:
Excess fair value over book value (assigned to trademarks) is amortized over 20
years.
The initial value method is used by both companies.
The following information is available regarding Jones and Whitton:
Compute Whitton's accrual-based consolidated net income for 2011.
41. On January 1, 2010, Jones Company bought 15% of Whitton Company.
Jones paid $150,000 for these shares, an amount that exactly equaled the
proportionate book value of Whitton. On January 1, 2011, Whitton acquired 80%
ownership of Jones. The following data are available concerning Whitton's
acquisition of Jones:
Excess fair value over book value (assigned to trademarks) is amortized over 20
years.
The initial value method is used by both companies.
The following information is available regarding Jones and Whitton:
Compute the non-controlling interest in net income for 2011.
