income of $ 190,000 and paid cash dividends totaling $ 125,000 . In the January 1 , 200x consolidated balance sheet , goodwill should be reported at
Question 4
On December 31 , 1988 , Saxe Corporation was merged into Poe Corporation . In the business combination , Poe issued 200,000 shares of its $ 10 par common stock , with a market price of $ 18 a share , for all of Saxe ' s common stock . The stockholders ' equity section of each company ' s balance sheet immediately before the combination was : Assume that the merger is accounted for using the acquisition method of accounting . December 31 , 1988 additional paid-in capital should be reported at
Question 5
Scroll , Inc ., a wholly owned subsidiary of Pirn , Inc ., began operations on January 1 , 2005 . The following information is from the condensed 2005 income statements of Pirn and Scroll : Additional information :
Sales by Pirn to Scroll are made on the same terms as those made to third parties . Equipment purchased by Scroll from Pirn for $ 36,000 on January 1 , 2005 , is depreciated using the straight-line method over four years . In Pirn ' s December 31 , 2005 , consolidating worksheet , how much intercompany profit should be eliminated from Scroll ' s inventory ?
Question 6
The preparation of consolidated statements likely will require the following information about the subsidiary ' s assets and liabilities at the date of acquisition :
Question 7