Purchase price in the consolidated financial statement

Assignment Help Accounting Basics
Reference no: EM13120202

On January 1, 2011, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The bonds had a carrying value of $421,620, and Riley paid $401,937 for them.

How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2011?

A. The difference is added to the carrying value of the debt.

B. The difference is deducted from the carrying value of the debt.

C. The difference is treated as a loss from the extinguishment of the debt.

D. The difference is treated as a gain from the extinguishment of the debt.

E. The difference does not influence the consolidated financial statements.

Reference no: EM13120202

Questions Cloud

What type of liabilities are these called : There are situations wherein a company faces a potential liability, but is not certain of all of the details associated with such potential liabilities.
Find proportion of employees who have mba : Company have MBA degrees. Also, 64 percent of the managers have MBA degrees. Using the probability formulas, find the proportion of employees who either have MBAs or are managers.
Illustrate what minimum speed will allow the ball to clear : Illustrate what minimum speed will allow the ball to clear the roof?at what angle should the ball be tossed. (in picture at roof starts at 3m and the angle of the roof there is 45degrees
Retail sales - neckwarmers : Neckwarmers. Mountainside Fleece sold 40 Neckwarmers. Solid-color neckwarmers sold for $9.90 each and print ones sold for $12.75 each.
Purchase price in the consolidated financial statement : How should you account for the difference between the carrying value and the purchase price in the consolidated financial statements for 2011?
What volume will the gas occupy : Liquid nitrogen has a density of 0.807 g/mL at -195.8 °C. If 1.00 L of N2(l) is allowed to warm to 25°C at a pressure of 1.0 atm, what volume will the gas occupy.
What was their net income for the year : McKinney Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year they issued common stock totaling $141,000. What was their net income for the year?
Evaluate exponential and logarithmic functions : The bacteria Escherichia coli are commonly found in the human bladder. Suppose that 3000 of the bacteria are present at time t-0. Then t minutes later, the number of bacteria present can be approximated by:
Compute the 2012 tax liability for charlotte : Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her. She also maintains the household in which her parents live and furnished 60% of their support.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Lifetime learning credit-modified agi

In the fall of 2013, James went back to school to earn a masters degree. He incurred $7,000 of qualified educational expenses and his modified AGI for the year was $40,000. His Lifetime Learning Credit is:

  Bond issue and interest accrued on bonds due adjustment

Show the journal entries in 2006. (Please be reminded the year-end for ABC Corporate is Dec 31, adjusting is required)

  Journal entry for issuance of bonds

Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2009.

  Issuance of bonds and payment of interest

On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record

  Comprehensive bank reconciliation with journal entries

On May 31, 2010, James Logan Company had a cash balance per books of $8,205.62. The bank statement from Farmers State Bank on that date showed a balance of $7,749.57. A comparison of the statement with the cash account revealed the following facts..

  Fasb codification system

What is the FASB Codification System and what is its purpose? What are the nine content areas located in the FASB Codification System? What types of items are located under each content area?

  Description of business analysis

Compare and contrast how production analysis is performed and capable to evaluate production situations using economy of scale, elasticity and other analytic tools.

  Interest of refinancing-home equity loans

If an individual taxpayer acquires a mortgage to buy his principle residence and then, several years later, refinances that mortgage with a new mortgage, the interest on that new mortgage is:

  Compute any passive investment income tax penalty

In 2012 Sweetwater's excess net passive income is $42,000. Sweetwater holds $31,000 of accumulated earnings and profits from a C corporation year.

  Income taxes journal entry

Tazmania Inc. had pretax financial income of $154,000 in 2007. Prepare Tazmania's journal entry to record 2007 taxes, assuming a tax rate of 45%.

  Journal entries of accounts and notes payable

Prepare the journal entries necessary to record the transactions above using the appropriate dates. Prepare the adjusting entries necessary at Dec. 31, 2007 in order to properly report interest expense related to the above transactions. Assume stra..

  Prepare the necessary entries from

Stock Options, Prepare the necessary entries from 1/1/10-2/1/12 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."

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