Initial value method in accounting for the combination

Assignment Help Accounting Basics
Reference no: EM13139517

One company acquires another company in a combination accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this decision?

A. It is the only method allowed by the SEC

B. It is relatively easy to apply

C. It is the only internal reporting method allowed by generally accepted accounting principles

D. Operating results on the parent's financial records reflect consolidated totals

E. When the initial value method is used, no worksheet entries are required in the consolidation process

Reference no: EM13139517

Questions Cloud

What process is responsible for position effect variegation : What process is responsible for position effect variegation? A. Inactivation of a gene due to deletion B. Activation of a gene by an enhancer C. Gene duplication D. Inactivation of a gene due to its incorporation in a heterochromatic region of the..
What output is the average variable cost : At what output is the average variable cost (AVC) at a minimum and if the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?
Determine the best method to allocate of common costs : determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel etc), either by salary or number of employees.
Discuss the book of deuteronomy : Discuss the Book of Deuteronomy in terms of the Name of the Book, Authorship, Occasion and Purpose of the Book and an Outline of the Book.
Initial value method in accounting for the combination : One company acquires another company in a combination accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this..
How much copper(ii) oxide (cuo) will form : If 100.0 grams of copper (Cu) completely reacts with 25.0 grams of oxygen, how much copper(II) oxide (CuO) will form from 140.0 grams of copper and excess oxygen?
Calculate the p-value for the test of the hypothesis : Calculate the P-value for the test of the hypothesis p1 - p2=0. Let p1 represent the population proportion of eligible students in Pennsylvania.
What are the map distances : In gorgonzolas, there are three recessive traits that affect the organism's appeal: shrunken fruit, foul-smelling flowers, and short height. A heterozygote was crossed with a homozygote.
What is maximum that she would be able to save in taxes : Lisa is in the 35% marginal tax bracket, what is maximum that she would be able to save in taxes in the current year as a result of these corporate losses?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Subsidiary organization-creation of a business combination

How does a parent company account for a subsidiary organization in the years that follow the creation of a business combination?

  Government reporting agencies

Why is it difficult to develop accounting reporting categories that are uniform for governments within the same type of entity (e.g. cities) and even more difficult to develop them for governments within different types of entities

  Estimated costs and activities for the current year

The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools:

  How do you value the obsolete inventory

There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?

  Impact of risk on wacc

The Nunnally Company has equal amounts of low-risk, and high-risk projects. Nunnally estimates that is overall WACC is 12%. The CFO believes that this is the correct WACC for the company's average-risk projects

  Difference between a value-added and a non-value-added cost

What is the difference between a value-added and a non-value-added cost? Give an example of each. Participate in follow-up discussions by reviewing your classmates' posts and expanding upon what they have written regarding value-added and non..

  Journalize the transactions for horner corporation

Host Corporation is authorized to issue 800,000 shares of $7 par value common stock. During 2010, its first year of operation, the company has the following stock transactions.

  What effect does tax depreciation have on the computation

How is tax basis calculated and what effect does tax depreciation have on the computation of the gain or loss on the disposition of a capital asset?

  Explain the fiancial information each contains

Assume that you are Sam. Write Blair a memo explaining teh follwoin financail statemnt itemsto her. in your explanation, describe each of the two financial statemnts and explain the fiancial information each contains.

  Adjusted balance of gleason advertising company

Prepare the adjusting entry at December 31, and using T accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account.

  What equal amounts can maria withdraw at the end of each

Maria Alvarez is investing $370,700 in a fund that earns 11% interest compounded annually. What equal amounts can Maria withdraw at the end of each of the next 21 years?

  Using the installment-sales method

Using the installment-sales method, make summary entries to record: (a)   the installment sales and cash collections; (b)   the cost of installment sales; (c)   the unrealized gross profit; (d)   the realized gross profit.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd