Consolidation Method For Reporting Its Investment

February 15, 2022

Order ID# 45178248544XXTG457 Plagiarism Level: 0-0.5% Writer Classification: PhD competent

Style: APA/MLA/Harvard/Chicago Delivery: Minimum 3 Hours Revision: Permitted

Sources: 4-6 Course Level: Masters/University College Guarantee Status: 96-99%

Instructions

Consolidation Method For Reporting Its Investment

Question Description

P Corporation acquired 60 percent of K Corporation on March 31, year 5.Because P controls K; it uses the consolidation method for reporting its investment. P should use which of the following for recording its investment in K for internal record keeping?

The cost method must be used.

The equity method must be used

The cost or the equity method may be used.

The consolidation method must be used.

AG acquired 80 percent of the shares of its subsidiary LM on January 1, Year 5.On this date the fair value of the land of LM was greater than its carrying value. Which of the combinations of LM’s net book value (NBV) and fair value increments (FVI) would be included in its consolidated assets values for land on December 31, year 6?

80 percent of NBV and 90 Percent of FVI.

100 percent of NBV and 90 Percent of FVI.

100 percent of NBV and 100 Percent of FVI

80 percent of NBV and 80 Percent of FV

Use the following information for Questions 9 and 10

On January 1, Year 6, AB Inc. purchased 80 percent of the common shares of CD Corp. for

$ 1, 400,000. On the date of acquisition CD’s shareholders’ equity was as follows:

Common Shares $600,000

Retained Earnings 608,000

Any acquisition differential was allocated to goodwill. During year 6, CD earned a net income of $400,000 and paid dividends of $300,000. On December 31, year 6, a goodwill impairment loss of $30,000 was recorded.

What will be the amount of non-controlling interest on the consolidated balance sheet as at December 31, year 6?

$241,600

$255,000

$261,900

$364,000

What is consolidated net income attributable to the non-controlling interest on the consolidated income statement for the year ended December31, year 6?

$20,000

$22,000

$74,000

$80,000

Consolidation Method For Reporting Its Investment

RUBRIC

Excellent Quality

95-100%

Introduction

45-41 points

The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support

91-84 points

The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology

58-53 points

Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.

Average Score

50-85%
40-38 points

More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points

Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points

Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.

Poor Quality

0-45%
37-1 points

The background and/or significance are missing. No search history information is provided.
75-1 points

Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points

There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met

You Can Also Place the Order at www.perfectacademic.com/orders/ordernow or www.crucialessay.com/orders/ordernow

Consolidation Method For Reporting Its Investment

Consolidation Method For Reporting Its Investment