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JulijaS [17]
3 years ago
7

Papa Company acquired land with an office building on it from its subsidiary, Sonny Company, for $110,000. Prior to the sale, So

nny's carrying value of the land was $60,000 and its net carrying value of the building was $50,000. At the time of the transaction, Papa appropriately determined that the land had a fair value of $75,000 and the building had a fair value of $35,000. At what amount should the land and building be reported on Papa's consolidated statements prepared immediately after the transaction?
Land Building
A) $75,000 $35,000
B) $55,000 $55,000
C) $60,000 $50,000
Business
1 answer:
DIA [1.3K]3 years ago
5 0

Answer:

C) $60,000 $50,000

Explanation:

In the consolidated balance sheet, the assets of Papa Company must be recognized for their book value, not their fair value. Since the acquisition was 110,000 with distribution in Sonny Company of 60,000 for the land and 50,000 for the building, that distribution must be maintained.

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Which of the following is NOT a repayment plan option?
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Answer: Loan forgiveness repayment plan.

Explanation:

The Extended Repayment Plan: This is a repayment plan option whereby the loan can be paid back for a period of about 25 years.

The Income-Sensitive Repayment Plan: This is a repayment plan option for those who want low income. Here, payment can either increase or reduce based on what the person earns annually.

The Graduated Repayment Plan: This is a repayment plan option which increases every two years.

The loan forgiveness repayment plan is not a repayment plan option.

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3 years ago
Compulsory education restricts whose freedom?
valkas [14]

Answer:

 Parents

Explanation:

 Compulsory education makes sure all students (nationwide) are exposed to the basic knowledge needed to function in the real world.

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3 years ago
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9
konstantin123 [22]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $15,000,000

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(Being payment of interest is recorded)

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3 0
3 years ago
The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
sergey [27]

How many shares were authorized?

Number of shares authorized are 4,000,000

--------

How many shares were issued?

Number of shares issued are 2,080,000

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How many shares are outstanding?

Number of shares outstanding = Number of shares issued - Numberof shares repurchased

Number of shares outstanding = 2,080,000 - 80,000

Number of shares outstanding = 2,000,000

--------

What is the balance of the Common Stock account?

Balance of common stock = Number of shares issued * Parvalue

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Balance of common stock = $2,080,000

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What is the balance of the Treasury Stock account?

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Balance of treasury stock = $2,000,000

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2)

June 12:  Issued 50,000 shares of $3 stated value common stock for cash of $250,000.

Cash; 250,000

Paid-In Capital in Excess of Par--Common Stock 50,000 x 3 = 150,000

Common Stock: 100,000

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6 0
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Answer:

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