Blog

Paul Corporation owns 70 percent of the voting common shares of Sally Corporation, purchased at book value. Noncontrolling interest was assigned $21,000 of income in the 20X4 consolidated income statement. What amount of net income did Sally Corporation report for the year?

The leadership at Beats by Dre has been very focused on selling the most headphones relative to all other headphones competitors. Which of the following metrics would be the best performance measurement?

A statutory consolidation is a type of business combination in which:

Match each question in the left column with an appropriate answer in the right column.

The length of the measurement period allowed to value the assets and liabilities in an acquired business combination starts on the date of acquisition and lasts until:

Parent Company purchased 100 percent of Son Inc. on January 1, 20X2 for $420,000. Son reported earnings of $82,000 and declared dividends of $4,000 during 20X2. Based on the preceding information and assuming Parent uses the equity method to account for its investment in Son, what is the balance in Parent’s Investment in Son account on December 31, 20X2, prior to consolidation?

ULTA Beauty is offering a special $10 rebate to encourage purchase now as opposed to next month. Which stage in the consumer decision-making process is this rebate most targeting?

On January 3, 20X5, Pine Company acquired 75 percent of Sap Company’s outstanding common stock for cash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Sap Company’s net assets at the date of acquisition. Selected balance sheet data at December 31, 20X5, are as follows:   Pine Sap Total Assets $ 504,000 $ 216,000 Liabilities 144,000 72,000 Common Stock 120,000 60,000 Retained Earnings 240,000 84,000 Total Liabilities & Stockholders’ Equity $ 504,000 $ 216,000 Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Pine Company’s December 31, 20X5, consolidated balance sheet?

What does a positive test for pupillary reaction indicate?

A primary benefit of consolidated financial statements is that they