Answer:
Part A)
The eliminating entries are recorded only in the consolidation work paper and therefore do not change the balances recorded on the company's books. Each time consolidated statements are prepared the balances reported on the company's books serve as the starting point. Thus, all the necessary eliminating entries must be entered in the consolidation work paper each time consolidated statements are prepared.
Part B)
For acquisitions prior to the application of FASB 141R, the balance assigned to the non-controlling shareholders at the beginning of the period is based on the book value of the net assets of the subsidiary at that date and is recorded in the work paper in the entry to eliminate the beginning stockholders' equity balances of the subsidiary and the beginning investment account balance of the parent. For acquisitions after the effective date of FASB 141 R, the non-controlling interest at a point in time is equal to its fair value on the date of combination, adjusted to date for a proportionate share of the undistributed earnings of the subsidiary and the non-controlling interest's share of any write-off of differential. Another approach to determining the non-controlling interest at a point in time is to add the remaining differential at that time to the subsidiary’s common stockholder’s equity and multiply the result by the non-controlling interests proportionate ownership interest in the subsidiary
Part C)
In the consolidation work paper the ending balance assigned to non-controlling interest is derived by crediting non-controlling interest for the starting balance, as indicated in the preceding question, and then adding income assigned to the non-controlling interest in the consolidated income statement and deducting a pro-rata portion of subsidiary dividends declared during the period.
Part D)
All the stockholders' equity account balances of the subsidiary must be eliminated each time consolidated financial statements are prepared. Inter-company receivables and payables, if any, must also be eliminated.
Part E)
The "investment in subsidiary" and "income from subsidiary" accounts must be eliminated each time when the consolidated financial statements are prepared. Inter-company receivables and payables, if any, must also be eliminated.
Answer:
Required rate of return is 6.97%
Explanation:
The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:
Stock price =dividend/required rate of return
stock price is $80.40
required rate of return is unknown
the dividend on the preferred stock is $5.60
required rate of return=dividend/stock price
required rate of return =$5.60/$80.40=6.97%
The required rate of return based on the stock price and dividend information provided is 6.97%
Answer:
<u>(d)True, brokers often have inside information that is generally not available to the public. You should listen to her and profit from her inside knowledge</u>
Explanation:
- A broker is a person who has knowledge and expertise in his field of tradings and takes his commission for the services provided as these brokers also tend to have inside information and the success of the broker for the past five years proves this fact.
- Most of them typically have a formal license and proper training. Most of them are flexible and do dealing with face to face.
Where will the proceeds from E's life insurance policy be directed to? The proceeds will be directed to F because he was the primary beneficiary at the time of E's death. When a life insurance policy is set up, you are able to name one or more people who are able to receive benefits from the policy, because the scenario above does not state anyone else was on the policy we have to assume it was just F. Therefor, F would receive full benefits from the policy.
Answer:
The correct answer is: society's understanding to the labor force.
Explanation:
Technological knowledge refers to a set of knowledge aimed at the creation, manipulation and evaluation of technological artifacts. It is a form of knowledge that goes beyond the observation of existing phenomena. His interest is in the creation of new artifacts or systems and in the solution of problems or needs through new technological instruments.
Technological knowledge is held by people. For example, someone may know how to make a radio, a compass or a television. However, the most advanced technological knowledge is usually in the possession of large companies or governments. For example, the knowledge to make electric cars, to make weapons, rockets, chips, sensors, etc.
