F3 Flashcards
In consolidation of liabilities, what liabilities will be shown in the consolidation of the parent?
The liabilities of any subsidiary controlled or owned greater than 50 percent of
How do you value asset that was sold from subsidiary to parent?
- Money you paid minus the gain of the subsidiary that will the the carrying amount of the asset
Intercompany sale of equipment in consolidation should be treated as
As if the sale did not take place. The parent will have the original cost of the asset and depreciation as if no chances
Not equally initial investment but they suppose to have equal contribution. What should you do?
- Get the highest contribution of the partner times it to how many partners is there and divided by the # of partners.
- If its goodwill calculation add all the contributions of the partners the divided by the # of partners and make sure you add their individual contributions to the partnership
Bonds on discount and premium
Bonds on discount is that coupon rate is less than market rate
Premium coupon rate is higher than market rate
Formula on how to get bonus of an company officer after deducting the bonus, but b4 deducting the taxes
- Computer first the bonus by multiplying the rate.
- Then answer number 1 divided by the 1+ the rate
