ACC 577 help A Guide to career/uophelp.com ACC 577 help A Guide to career/uophelp.com | Page 2

plant assets (net) which were $100,000 in excess of the carrying amount.
On that date, the fair value of the 20% non controlling interest in Shaw
was appropriately determined to be $200,000. For the year ended
December 31, 200x, Shaw had net 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