Assume that the parent has some land that had been purchased from the subsidiary who reported a
Question:
Assume that the parent has some land that had been purchased from the subsidiary who reported a gain on sale. Briefly explain whether this fact will increase, decrease or not change the debt-to-equity ratio when preparing the consolidated balance sheet.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
The debttoequity ratio will increase because the ...View the full answer
Answered By
Shaira grace
I have experience of more than ten years in handing academic tasks and assisting students to handle academic challenges. My level of education and expertise allows me communicate eloquently with clients and therefore understanding their nature and solving it successfully.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781260881295
10th Edition
Authors: Hilton Murray, Herauf Darrell
Question Posted:
Students also viewed these Business questions
-
Assume that the subsidiary has some inventory that had been purchased from the parent who earned a 30% gross profit. Briefly explain whether this fact will increase, decrease or not change the...
-
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
-
Multiple Choice 1. What is a basic premise of the acquisition method regarding accounting for a noncontrolling interest? a. Consolidated financial statements should be primarily for the benefit of...
-
St . Petersburg Graduate School of Management ( GSOM ) in russia . now you required to Analyze the landscape and competitive market of our school ( you will need to choose from which market you are...
-
The partial work sheet for Emil Consulting for June is as follows: Required 1. Write the owners name on the Capital and Drawing T accounts. 2. Record the account balances in the T accounts for owners...
-
The newly established Society for Ethical Teachings, a not-for-prot organization, maintains two fundsa general fund for operations and a building fund to accumulate resources for a new building. In...
-
Do you know what is expected of you at work? 72 28 LO.1
-
There are three rooms in a house: the kitchen, the bedroom, and the living room. There is a radio transmitter outside the home that can be received in each room. A user is wearing a device that can...
-
Express the balance sheets for Diadyn Corp. in common-size percentages
-
Access the 2020 consolidated financial statements for Empire Company Limited by going to the investor relations section of the companys website. Answer the questions below. Round percentages to one...
-
Assume that the fair value of the subsidiary at the date of acquisition includes some goodwill. Which of the reporting methods described in this chapter would typically report the lowest debt-to...
-
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
-
Pop Company holds 70% of Son Company stock. Pop has sold inventory to Son Company as follows: Percent of Sold Sales Inventory Cost to Price to Held at Year Pop Son Year end 2018 $203,000 $355,000 30%...
-
A B C D E F G H J K L 1 Cost Mortgage Payments 2 Cost Description The upscale hotel's building was acquired for $10 million, leading to monthly mortgage payments of $60,000. Behavior Dollar Amount...
-
What celebrity attributes make for effective celebrity product endorsements? Celebrity testimonials are advertising messages delivered by famous people who say or imply that they use the...
-
Initial investment of $100,000 in a new medical equipment. Interest Rate 10% (Borrowed money from a bank). Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Investment 100,000 Expected Cash Flow 20,000...
-
How do I draw a top view of this sketch and I was also wondering how to draw an oblique cabinet projection. + + 1 1 ' '
-
Your client is facing a possible personal holding company tax or accumulated earnings tax in 2017. Advise the client as to the total tax due and what the effective tax rate will be for this...
-
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
-
Because of the acquisition of additional investee shares, an investor may need to change from the fair value method for a FVTPL investment to the equity method for a significant influence investment....
-
An investor uses the equity method to report its investment in an investee. During the current year, the investee reports other comprehensive income on its statement of comprehensive income. How...
-
Hil Company purchased 10,000 common shares (10%) of Ton Inc. on January 1, Year 4, for $345,000, when Ton's shareholders' equity was $2,600,000, and it classified the investment as a FVTPL security....
-
The cost of partially completed goods at the end of the period would be Ending work in process inventory Cost of goods sold Beginning finished goods inventory Beginning work in process inventory
-
At a 3% (EAR) rate of interest, you will quadruple (increase four folds) your money in approximately ____ years.
-
Smile Company makes baked goods. The budgeted sales are $620,000, budgeted variable costs are $260,400, and budgeted fixed costs are $237,800. What is the budgeted operating income?
Study smarter with the SolutionInn App