Describes how preference shares would be reported

Assignment Help Financial Accounting
Reference no: EM132489622

Question 1: PCD Corp. acquired 80% of the outstanding common shares of SAL Inc. At the date of acquisition, SAL had preference shares (classified as equity) outstanding with a book value of $100,000 and a fair market value of $140,000. None of the preference shares were owned by PCD. The preference shares had no dividends in arrears at this date. Which of the following statements best describes how preference shares would be reported on the consolidated statement of financial position at the date of acquisition?

Option a) Preference shares would be reported as part of the non-controlling interest (NCI) in the equity section of the statement of financial position and valued at $100,000.

Option b) Preference shares would be reported at $100,000 in the equity section of the statement of financial position.

Option c) Preference shares would be reported as part of the NCI in the equity section of the statement of financial position and valued at $140,000.

Option d) Preference shares would be reported at $140,000 in the equity section of the statement of financial position.

Reference no: EM132489622

Questions Cloud

Indicating the presence of either fecal coliform bacteria : Which test do you think is the most conclusive in indicating the presence of either fecal coliform bacteria and/or Pseudomonads, the presumptive
Are the convertible preferred shares potentially dilutive : Are the convertible preferred shares potentially dilutive? Why or Why not? The $10 dividend on the preferred shares is cumulative, and the tax rate is 25%.
What is the generation time of this bacterium : A typical bacterial cell increases from one cell to 512 cells in 10 hours. What is the generation time of this bacterium?
Identify the key terms or clauses : Identify the key terms or clauses it contains, any laws that are relevant to that contract, and issues or areas of dispute that frequently arise
Describes how preference shares would be reported : Describes how preference shares would be reported on the consolidated statement of financial position at the date of acquisition?
Why is hydrogen peroxide so effective against anaerobes : Why is hydrogen peroxide so effective against anaerobes like Clostridium tetani that have infected a puncture wound?
Explain the effect of bavistin on anthracnose : Explain the effect of Bavistin on anthracnose. Would different strains of colletotrichum have different reaction?
Discussion about the jewel of the solar system : Fourteen year old Ivan tries to engage his friends in conversation by telling them facts about his special interests, such as "Did you know that Saturn.
What type of bacterial synthesis is inhibited : What type of bacterial synthesis is inhibited by ciprofloxacin, a DNA gyrase inhibitor, and rifampin, a RNA polymerase inhibitor?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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