Liquidating dividend from an investee
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?
What portion of the balances of subsidiary stockholders' equity accounts are eliminated in preparing the consolidated balance sheet? Included in Standard's liabilities was an account payable to Beta in the amount of ,000, which Beta included in its accounts receivable. Based on the preceding information, what amount of total assets did Beta report in its balance sheet immediately after the acquisition?
Which of the following observations is NOT consistent with the cost method of accounting? Investee dividends from earnings since acquisition by investor are treated as reduction of investment. Investments are carried by the investor at historical cost.
For the same year, Opteron reported net income of ,000, which includes an extraordinary gain of 40,000. By what amount would Athlon's investment in Opteron Corporation increase for the year, if Athlon used the equity method?
purchases 100% of Son Company on January 1, 20X1 when Parent's retained earnings balance is 0,000 and Son's is 0,000. On December 31, 20X9, the trial balances of the two companies are as follows: Required: 1) Prepare the eliminating entries needed as of December 31, 20X9, to complete a consolidation worksheet.
The consolidation process consists of all the following except: A. Closing the subsidiary's earnings into the parent's retained earnings. Combining the accounts of separate companies, creating a single set of financial statements. Based on the preceding information, what amount of total assets was reported in the consolidated balance sheet immediately after acquisition? It is consistent with the treatment normally accorded noncurrent assets. On January 1, 20X9 Athlon Company acquired 30 percent of the common stock of Opteron Corporation, at underlying book value. William uses the equity method to account for this investment. Based on the preceding information, what amount will be reported by Yang as balance in investment in Spiel on December 31, 20X8, if it used the fair value method of accounting? e Gate has 100,000 shares of par value, 5 percent cumulative preferred stock outstanding. e Gate reported net income of 0,000 for 20X8 and paid total dividends of ,000. Its primary use is in reporting nonsubsidiary investments. Son reported earnings of ,000 and declared dividends of ,000 during 20X2. Based on the preceding information and assuming Parent uses the cost 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?