1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vadim26 [7]
3 years ago
12

On September 30, Year 1, Payne, Inc. exchanged some of its shares for all of the common stock of Salem, Inc. in a business combi

nation. Salem continued as a wholly owned subsidiary of Payne. How should Salem's January 1, Year 1, Retained Earnings and income for January 1 to September 30 be reported in Year 1 consolidated statements?
Business
1 answer:
MrRissso [65]3 years ago
6 0

Answer:

Payne should exclude Salem's January 1, Year 1, Retained Earnings and income for January 1 to September 30 from consolidated Retained Earnings and consolidated income

Explanation:

The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 would not be included in the Year 1  consolidated financial statements.

The reason is that The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 are part of the equity of the shareholders that that Payne acquired on September 30, Year 1. They would then be eliminated in the eliminating entry of the consolidating investment.

You might be interested in
What would be the best answer
coldgirl [10]

Answer:

<em>The</em><em> </em><em>corr</em><em>ect</em><em> </em><em>answe</em><em>r</em><em> </em><em>is</em><em> </em><em>:</em><em>-</em> Measurable gain

7 0
3 years ago
Identify which documents Max needs to open a bank account.
MissTica
Government issued picture ID, as well as a second form of ID. Preferably a social security card.
4 0
3 years ago
After you send in your FAFSA form, what will you receive back
goldenfox [79]
<span>After you submit the Free Application for Federal Student Aid (FAFSA), you will be sent a Student Aid Report (SAR). If they have a valid e-mail address on file for you, they will send you an e-mail, within 3 to 5 days, with instructions on how to access an online copy of your SAR.</span>
8 0
3 years ago
Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you sp
ikadub [295]

Answer:

The present value of the promised gift will:

be less than $5,000.

Explanation:

The present value of $5,000 to be received in three years' time from today is less than $5,000 received.  This is explained by the time value of money concept.  If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751).  This means that $5,000 received in year 3 is less than $5,000 received today.

3 0
3 years ago
Please help me. Only answer if you know.
Nostrana [21]
A. Occupational Outlook Handbook.
3 0
3 years ago
Other questions:
  • Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $
    11·1 answer
  • Patriot Tools, a company that manufactures industrial tools, incurs higher costs because of its refusal to outsource its manufac
    12·1 answer
  • How should office workers prevent workplace hazards?
    5·1 answer
  • The demand for labor depends primarily on the additional output produced as a result of hiring an additional worker and A. the a
    7·1 answer
  • Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the f
    5·1 answer
  • If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if th
    10·1 answer
  • Dooling Corporation reported balances in the following accounts for the current year: Beginning EndingInventories $600 $300Accou
    12·1 answer
  • Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) a
    14·1 answer
  • Joseph is a sales manager for ETC Corporation. ETC is a manufacturer of high-end kitchen appliances for restaurants. Nicole has
    6·1 answer
  • Suppose that as a result of a housing price​ decline, the value of the​ bank's securitized assets falls by an uncertain​ amount,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!