FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When a parent company uses the initial value method or the partial equity method to account for their investment, they must make entry *C on

When a parent company uses the initial value method or the partial equity method to account for their investment, they must make entry *C on their consolidation worksheet. What is the purpose of *C and why is it not required if the parent company uses the equity method?

Step by Step Solution

★★★★★

3.48 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

In accounting when a parent company holds an investment in a subsidiary the method used to account for that investment depends on the level of control ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

More Books

Students also viewed these Accounting questions

Question

★★★★★
When a parent company applies the initial value method or the partial equity method to an investment, worksheet adjustment must be made to the parents beginning Retained Earnings account (Entry *C)...

Answered: 1 week ago

Question

★★★★★
When a parent company uses the equity method to account for investment in a subsidiary, the amortization expense entry recorded during the year is eliminated on a consolidation worksheet as a...

Answered: 1 week ago

Question

★★★★★
1. A company acquires a subsidiary and will prepare consolidated financial statements for external reporting purposes. For internal reporting purposes, the company has decided to apply the initial...

Answered: 1 week ago

Question

★★★★★
A pistoncylinder device contains superheated steam. During an actual adiabatic process, the entropy of the steam will (never, sometimes, always) increase.

Answered: 1 week ago

Question

★★★★★
A mass m is suspended from the ceiling by a spring and is free to move vertically in the y direction as indicated in Figure. We are given that the potential energy as a function of position is U = ky...

Answered: 1 week ago

Question

★★★★★
PERCENTAGE OF CREDIT SALES METHOD At December 31, 2009, Garner has a $1,000 credit balance in its allowance for doubtful accounts. Garner estimates that 1.5 percent of its 2010 credit sales will...

Answered: 1 week ago

Question

★★★★★
How might individual differences (e.g. personality characteristics, coping strategies) moderate (i.e. strengthen or weaken) the effects of (i) work- and family-related antecedents on workfamily...

Answered: 1 week ago

Question

★★★★★
The amount of denim used daily by the Southwest Apparel Company in its manufacturing process to make jeans is normally distributed with an average of 4000 yards of denim and a standard deviation of...

Answered: 1 week ago

Question

★★★★★
Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $120,000 and sell its old low-pressure glueball, which is fully depreciated, for $20,000. The...

Answered: 1 week ago

Question

★★★★★
According to a Bureau of Labor Statistics release of March 25, 2015, statisticians earn an average of $84,010 a year. Suppose that the current annual earnings of all statisticians have the mean and...

Answered: 1 week ago

Question

★★★★★
Question 3 (4 points) Explain the types of control implemented report 1 and 2 ( preventive, detective or corrective). Compare the controls in Report 1 and Report 2, which would you recommend and why

Answered: 1 week ago

Question

★★★★★
Problem 1 (adapted) Abigail Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling Price P25 per unit Variable expense P15...

Answered: 1 week ago

Question

★★★★★
you have to choose from the give 4 optionsaccounts payableaccounts receivableadvertising expensecash Machinery and Equipment Repair Service is owned by William Giese. Use the above figures to prepare...

Answered: 1 week ago

Question

★★★★★
View Policies Current Attempt in Progress The current sections of Sunn Inc's balance sheets at December 31, 2021 and 2022, are presented here. Sunn's net income for 2022 was $153,000. Depreciation...

Answered: 1 week ago

Question

★★★★★
Two factories I and II produce phones for brand ABC. Factory I produces 60% of all ABC phones and Factory II produces 40%. 10% of the phones from Factory I are defective, and 20% of those produced by...

Answered: 1 week ago

Question

★★★★★
At the beginning of the year, Sandhill Company had total assets of $883,000 and total liabilities of $368,000. Answer the following questions. (a) If total assets increased $151,000 during the year...

Answered: 1 week ago

Question

★★★★★
Students must show their work on paper for each question asked in the case. Nancy, a . . . . . . . . College graduate from the business fundamental program, joined as a Store Coordinator at the...

Answered: 1 week ago

Question

★★★★★
Why should you not model a decision variable as a random variable with a probability distribution?

Answered: 1 week ago

Question

★★★★★
Prybylos, Inc., owns 90 percent of Station Corporation. Both companies have been profitable for many years. During the current year, the parent sold for $100,000 merchandise costing $70,000 to the...

Answered: 1 week ago

Question

★★★★★
Several years ago, Einstein, Inc., bought 40 percent of the outstanding voting stock of Brooks Company. The equity method is appropriately applied. On August 1 of the current year, Einstein sold a...

Answered: 1 week ago

Question

★★★★★
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: On January 2, Park borrowed $60,000 and used the proceeds to obtain 80 percent of the outstanding common...

Answered: 1 week ago

Question

★★★★★
What is the first guideline for doing research with people? a. The rights and well-being of the participants must come first. b. Participants have to give informed consent. c. Deception cannot be...

Answered: 1 week ago

Question

★★★★★
In the definition of psychology, the term behavior means a. only animal behavior. b. internal, covert processes. c. outward behavior. d. overt actions and reactions.

Answered: 1 week ago

Question

★★★★★
Which of the following is an ethical consideration when using animals in research? a. Animals cannot be killed during the course of an experiment. b. Avoiding exposing them to unnecessary pain. c....

Answered: 1 week ago

Previous Question Next Question