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Beni Corp. purchased 100% of Carr Corp.'s outstanding capital
stock for $430,000 cash. Immediately before the purchase, the
balance sheets of both corporations reported the following: On
the date of purchase, the fair value of Carr's assets was $50,000
more than the aggregate carrying amounts. In the consolidated
balance sheet prepared immediately after the purchase, the
consolidated stockholders' equity should amount to:
Question 10
Which one of the following methods, if any, may a parent use on
its books to carry an investment in a subsidiary that it will
consolidate?
Question 11
Parco owns 100% of its subsidiary, Subco, which it acquired at
book value. It carries its investment in Subco on its books using
the equity method of accounting. At the beginning of its 2009
fiscal year, the investment in Subco account was $552,000. During
2009 Subco reported the following: In preparing its 2009 fiscal
year consolidated statements, which one of the following is the
total amount of equity revenue that Parco will have to reverse for
2009 as a result of it ownership of Subco?
Question 12
Which of the following kinds of transactions should be eliminated
in the consolidating process?
Question 13
Which of the following statements concerning the primary
beneficiary of a variable-interest entity is/are correct? I. The
primary beneficiary has the ability to direct the most significant