You work as an accountant for regional CPA firm of Cash and Green. Your supervisor asked you to conduct research for three unrelated clients.

1. On January 1, the Ditka Company agreed to purchase all of Staley Bear's interest in the company for $30 per share. Staley, who owns 15%?and a controlling interest of Ditka ?previously threatened to engage in a hostile takeover attempt of Ditka. For the last two years, Ditka's stock traded from about $12-23?reaching $23 on December 31 of last year. How should Ditka record this transaction?

2. The Singletary Holding Company has sales exceeding $10 billion and each of its three, wholly-owned subsidiaries has sales exceeding $2 billion. Three years ago, the subsidiaries had "complex" capital structures?until Singletary acquired them. Singletary's annual report shows its consolidated income and individual income statement accounts of each subsidiary company. Should Singletary also report separate earnings-per-share balances for the three subsidiary companies?

3. A new client for your firm is G. Sayers who is preparing personal financial statements for a bank loan. Mr. Sayers is attempting to list his social security benefits to be received based on his future life expectancy as an asset on his financial statements. Mr. Sayers states that such benefits meet the definition of an asset. Would you agree to allow the social security benefits to be listed as an asset?

Required:

a) Provide responses for each independent case on the appropriate accounting treatment.

b) Support your responses with code sections from the FASB Accounting Standards Codification (ASC).

Bus 207 : Intermediate Accounting 1 - Project 2 You work as an accountant for regional CPA firm of Cash and Green . Your supervisor asked you to conduct research for three unrelated clients On January 1 , the Ditka Company agreed to purchase all of Staley Bear 's interest in the company for $30 per share . Staley , who owns 15 % and a controlling interest of Ditka previously threatened to engage in a hostile takeover attempt of Ditka . For the last two years , Ditka's's tock traded from about $12 - 23 - reaching $23 on December 31 of last year . How should Ditka record this transaction ? 2 . The Singletary Holding Company has sales exceeding $10 billion and each of its three wholly owned subsidiaries has sales exceeding $2 billion . Three years ago , the subsidiaries had " complex " capital structures - until Singletary acquired them Singletary 's annual report shows its consolidated income and individual income statement accounts of each subsidiary company . Should Singletary also report separate earnings per - share balances for the three subsidiary companies ? A new client for your firm is G . Sayers who is preparing personal financial statements for a bank loan . Mr . Sayers is attempting to list his social security benefits to be received based on his future life expectancy as an asset on his financial statements . Mr . Sayers states that such benefits meet the definition of an asset . Would you agree to allow the social security benefits to be listed as an asset ? Required : a ) Provide responses for each independent case on the appropriate accounting treatmen b ) Support your responses with code sections from the FASB Accounting Standard Codification ( ASC )