Which of the following statements about post-acquisition earnings is incorrect?А.They are the earnings produced subsequent to the acquisition date bymembers of the group.В.They form part of earnings of the economic entity.С.They are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.D.They form part of earnings of the economic entity and they are eliminated against theparent's earnings, in a similar fashion to pre-acquisition earnings.

Holding company A holding company refers to the company that holds and controls another company. The…

Which of the following statements about post-acquisition earnings is incorrect? А. They are the earnings produced subsequent to the acquisition date by members of the group. They form part of earnings of the economic entity. С. B.

Which of the following statements about post-acquisition earnings is incorrect? А. They are the earnings produced subsequent to the acquisition date by members of the group. They form part of earnings of the economic entity. С. B.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: You discovered the following errors in connection with your examination of the financial statements…

A: Non-Counterbalancing errors are those errors that do not get adjusted with the next year's figures…

Q: From page 10-3 of the VLN, when the company sells 100 shares of the treasury stock for $11 per…

A: When the company sells 100 shares of treasury stock at $11 per share which were purchased at The $12…

Q: Y and Z have capital balances of $80, 000, $180,000 and $60,000 respectively. Immediately prior to…

A: Partnership refers to the act of agreement between two or more people who decided to run the…

Q: from Rick Corporation's financial statements: Land Buildings Accumulated depreciation - building…

A: Statement of Cash Flow - Statement of Cash Flow includes movement of cash in the financial year. It…

Q: Change in amount between two years and percentages to be shown invidually for all lines

A: Formula: Change in amount = 2003 amount - 2002 Amount

Q: Accounts Payable Accounts Receivable Accumulated depreciation, Equipment Accumulated depreciation,…

A: No. Account Titles and Explanation Debit Credit 1 Revenue $263,200 Income Summary $263,200…

Q: The following is data collected by Bees Co. for the month of June: Static budget data: Sales…

A: The variance is the difference between the actual data and standard output of the production.

Q: Which machine would you recommend given the following information and interest rate is 10%? New…

A: Decision-making about which machine to use can best be done by using the Net Present Value (NPV)…

Q: 1.What are the three primary inventory cost flow assumptions? 2. How is cost of goods sold…

A: Since you have posted multiple questions, we will do the first one for you. To get the other…

Q: On 12-31-20, C leased a machine with a useful life of 6 years. The noncancelable lease agreement…

A: A lease agreement is an agreement where the lessor transfers the right to use the asset to the…

Q: Beagle Corporation has 28,000 shares of $10 par common stock outstanding and 15,000 shares of $100…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: On February 1, Windsor Company purchased 1,300 shares (2% 8whership) March 20, Windsor Company sold…

A: The journal entries are prepared to record day to day transactions of the business on regular basis.…

Q: come Statement accounts are closed at which stage of the accounting process? Multiple Cholce At the…

A: Solution: Income statements accounts are temporary accounts that are closed to income statement at…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Introduction

Q: Which of the following is a variable cost? O Acost that is $26,000 when production is 65,000, and…

A: Increase in production level = (91000 - 65000) / 65000 = 40% Increase in variable cost should…

Q: Problem 5 At the beginning of the current year, Wayv Company leased building to NCT U under an…

A: After all of a company's costs have been deducted, net income is the remaining revenue. Simply put,…

Q: Which of the following is a variable cost? O Acost that is $26,000 when production is 65,000, and…

A: There are primarily two types of cost namely fixed cost and variable cost Fixed costs are those…

Q: discussion on why is it important for an estate to have cash and why should selling an estate's…

A: Here discuss about the details of estate tax and its important for the cash liquidity and the…

Q: An installment note payable for a principal amount of $48,000 at 6% interest requires Lawson Company…

A: Carrying amount of the note after the final payment = Principal amount of installment notes payable…

Q: Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Standard…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A quantity of steel in the amount of $423,000.0 is needed for a project, payment due (from…

A: Amount Needed For The Project $423000 Determination of Total Interest for the Project…

Q: You are given the following information to do with Peters Hotel Balance b/f $20,164 Cash sale…

A: Cash book records all transaction regarding cash inflows and cash outflows. Transaction other than…

Q: Minot Corporation is preparing its cash budget for August. The following information is available…

A: The cash budget reflects the estimated flow of cash to be taken place in the business. The…

Q: which of the following instances would a liability that would otherwise be presented as current is…

A: Liability is an obligation that has to be paid by the company by sacrificing the assets. It is…

Q: On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold,…

A: Liability are the claims or obligations which arises due to past, present and future events. These…

Q: Why are market-based weights used instead of book-value-based weights when computing the weighted…

A: Market value is that present worth of the firm or any resource in the market on which it tends to be…

Q: rigold Company has the following iventory information July 1 Beginning Iinventory 30 units at $80…

A: Solution: Under perpetual inventory system, inventory is updated with each and every movement based…

Q: of product but actually produced only 7,400 units. Actual fixed overhead costs were $286,100.…

A: The standard cost variance is the difference between a standard cost and an actual cost.

Q: Why is poverty related to infrastructure and service provision?

A: Poverty is a condition in which an individual or community lacks the financial resources and…

Q: Only answer part D and part E

A: Income Statement Revenue Sales Revenue 68500 Less: Sales Return and Allowance -250…

Q: Africa Traders is a registered VAT vendor and uses periodic inventory system. Africa Traders buys…

A: VAT is Value Added Tax. The basic sales price excluding VAT is…

Q: materials (fiberglas labor le manufacturing ovex ed on direct labor ho manufacturing overhea .000 +…

A: The journal entries have been mentioned below.

Q: 341,000 Fair value of plan assets, Jan. 1 Contributions to the retirement fund during the year…

A: Formula: Return on plan Assets = Ending fair value of plan Assets - Beginning fair value of plan…

Q: Consider Taxpayers A and B who are in the same marginal tax bracket because of equal salaries. They…

A: Introduction Taxpayers must not include their capital gains in ordinary income, instead they must…

Q: Mr. J, Capital Office Equipment Accounts Payable 85 000.00 Notes Receivable 1 200.00 12 000.00 Notes…

A: The income statement is an essential part of the financial statements of the company. It is prepared…

Q: Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000.…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: 52. How much is the total expense for the month of February 2022 P103,001 P105,235 P107,253 P103,253…

A: Here asked about the details of total sales details which comprises of both cash sales and sales on…

Q: On January 1 , 2021, Gray Co. issued its 10%, 4-year convertible debt instrument with a face amount…

A: Answer - Calculation of balance of the unamortized premium on debt instrument as of Dec. 31, 2021 -…

Q: On January 1, 2019, EXO Corp. purchased BTS Inc. at a cost that resulted in recognition of goodwill…

A: Goodwill: Generally speaking, goodwill is an intangible asset that is related to the acquisition of…

Q: Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a…

A: Answer:

Q: 5. Assuming four annual deposits of ($1,000) are made, and the first payment occurs at the end of…

A: Annuity can be defined as a series of payments or receipts of equal amounts of money at equal…

Q: Common Stockholders' Profitability Analysis A company reports the following: Net income $125,000…

A: Equity- Equity represents the worth that would be returned to a corporation's investors if all of…

Q: 1. What amount should be reported as lease liability on January 1, 20217 2. What amount should be…

A: On January 1, 2021 Twice company entered into a lease agreement. The annual rental is 2,00,000…

Q: Based on the sample excerpt above, which one of the following is an accurate statement regarding the…

A: RevPAR refers to revenue per available room. This is an important operational and financial metric…

Q: hafford Inc. currently manufactures 2000 subcomponents in one of its factories. The unit costs to…

A: In this question, we are required to calculate the percentage (%) of increase that Chafford Inc, can…

Q: The Northeast Regional Division of Bridgeport Corp. has been requested to prepare a quarterly…

A: Solution Working note- 1- Purchase amount : =Sales * Percentage of average purchase. = (725000…

Q: Hello, in the above question 3 on the change in policy on the depreciation why not calculate the…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: French Vanilla Company commenced operations in the current year. A number of expenditures were made…

A: Introduction Intangible assets is an identifiable non-monetary asset which are not physical in…

Q: Frappe Company is acquiring Frappuccino Corporation on January 1, 2020. The cumulative earnings of…

A: Calculation of goodwill: Thus, goodwill is P2,800,000.

Q: A plant asset was purchased for P19,000 on January 1, 2011 with a residual value and useful life of…

A: Sum of Year digit Method: It is possible to calculate predicted depreciation over time using the sum…

Question

Which of the following statements about post-acquisition earnings is incorrect?
А.
They are the earnings produced subsequent to the acquisition date by
members of the group.
В.
They form part of earnings of the economic entity.
С.
They are eliminated against the parent's earnings, in a similar fashion to pre-
acquisition earnings.
D.
They form part of earnings of the economic entity and they are eliminated against the
parent's earnings, in a similar fashion to pre-acquisition earnings.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How should negative goodwill be shown on the consolidated financial statements of the acquirer? Group of answer choices As a liability on the statement of financial position As a loss on the statement of comprehensive income As a separate amount under shareholders' equity on the statement of financial position As a gain on the statement of comprehensive income
2. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity?A . Th ey are not recognized
Which of the following is not considered in the determination of Total Assets after business combination? Group of answer choices a.Book value of the acquirer’s total assets. b.Fair value of the acquiree’s total assets. c.Expenses that are actually paid in relation to business combination d.Contingent consideration
How shall an acquirer in a business combination account for the changes in fair value contingent consideration classified as equity instrument if the changes result from events after the acquisition date? a. The changes in fair value of contingent consideration classified as equity shall be recognized as gain or loss in profit or loss because they are not measurement period adjustments. b. Contingent consideration classified as equity shall not be re-measured and its subsequent settlement shall be accounted for within equity. c. The changes in fair value of contingent consideration classified as equity shell be retrospectively restated to beginning retained earnings because they are prior period error. d. The change in fair value of contingent consideration classified as equity shall be retroactively adjusted to goodwill/gain on bargain purchase because they are measurement period adjustments.
7.) If the amount paid by an investor (parent) is less than the proportional total of the estimated fair value of investee's (subsidiary's) assets acquired and liabilities assumed, the difference is recorded as ... a. Negative goodwill in the balance sheet of the investor. b. Gain from a bargain purchase in the income statement of the investor. Gain from a bargain purchase in the income statement of the investee. d. Allocated as a reduction to each of the asset and liability accounts when applying consolidation accounting by the investor. c.
Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies. Consequently, the company Group of answer choices A.) May transfer to income a part of said retained earnings so appropriated. B.)Should not identify said appropriation as an appropriation of retained earnings. C.) Should show the said appropriation of retained earnings within the stockholders' equity section of the balance sheet D.)Could charge costs or losses to the said appropriated retained earnings.
Which of the following is not considered in the determination of Total Assets after business determination? A. Book Value of the Acquirer's Total Assets B. Fair Value of the Acquiree's Total Assets C. Expenses that are actually paid in relation to business combination D. Contingent Consideration
For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.
If a company has elected the fair value option, where are gains and losses resulting from adjusting these accounts to fair value reported? Group of answer choices Unrealized Gains are reported as part of Other Comprehensive Income while Unrealized losses are reported as part of Net Income. Unrealized Gains and Losses are both reported as part of Net Income. Unrealized Gains are reported as part of Net Income, while Unrealized Losses are reported as part of Other Comprehensive Income. Unrealized Gains and Losses are both reported as part of Other Comprehensive Income.
Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.
In the cost method of acquisition income is recognized only when the subsidiary declares dividends Select one: True False