The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company’s net assets (all numbers are in thousands).     Atwood Franz Co. Franz Co. Book Value Book Value Fair Value   12/31/2021 12/31/2021 12/31/2021 Cash $ 870     $ 240     $ 240   Receivables   660       600       600   Inventory   1,230       420       580   Land   1,800       260       250   Buildings (net)   1,800       540       650   Equipment (net)   660       380       400   Accounts payable   (570 )     (240 )     (240 ) Accrued expenses   (270 )     (60 )     (60 ) Long-term liabilities   (2,700 )     (1,020 )     (1,120 ) Common stock ($20 par)   (1,980 )                 Common stock ($5 par)           (420 )         Additional paid-in capital   (210 )     (180 )         Retained earnings 1/1/18   (1,170 )     (480 )         Revenues   (2,880 )     (660 )         Expenses   2,760       620             Note: Parenthesis indicate a credit balanceAssume an acquisition business combination took place at December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.Compute consolidated revenues immediately following the acquisition.                         A)    $3,540.                B)    $2,880.            C)    $1,170.            D)    $1,650.            E)    $4,050.

On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate incorporation. Barber used the equity method to account for the investment. The following information is available for Thompson’s assets, liabilities, and stockholders’ equity accounts on January 1, 2020:     Book Value Fair Value Current assets $ 130,000   $ 130,000   Land   75,000     193,000   Building (twenty year life)   250,000     276,000   Equipment (ten year life)   540,000     518,000   Current liabilities   26,000     26,000   Long-term liabilities   124,000     124,000   Common stock   233,000         Additional paid-in capital   389,000         Retained earnings   223,000           Thompson earned net income for 2020 of $134,000 and paid dividends of $51,000 during the year.The 2020 total excess amortization of fair-value allocations is calculated to be                         A)    ($2,200).             B)    ($900).            C)    $(1,300).            D)    $(2,100).            E)    $3,500.

In an acquisition where 100% control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated financial statements?     Parent Subsidiary A) Book Value Book Value B) Book Value Fair Value C) Fair Value Fair Value D) Fair Value Book Value E) Cost Cost              

Name the specific depression of the previously named bone that the pointer is pointing to. _______

On January 1, 2020, Hemingway Co. acquired all of the common stock of Crotec Corp. For 2020, Crotec earned net income of $375,000 and paid dividends of $200,000. Amortization of the patent allocation that was included in the acquisition was $8,000.How much difference would there have been in Hemingway’s income with regard to the effect of the investment, between using the equity method or using the partial equity method of internal recordkeeping?

When consolidating parent and subsidiary financial statements, which of the following statements is true?

What has become of Faust’s social stature since we last met him in the cave with Gretchen? (We’ve skipped over a lot to get to here)

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger’s accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins’s accounts:     Wilkins Book Value Granger Book Value Granger Fair Value Retained earnings, 1/1/21 $ 250,000 $ 240,000     Cash and receivables   170,000   70,000 $ 70,000 Inventory   230,000   180,000   210,000 Land   320,000   220,000   240,000 Buildings (net)   480,000   240,000   280,000 Equipment (net)   120,000   90,000   90,000 Liabilities   650,000   440,000   430,000 Common stock   360,000   80,000     Additional paid-in capital   60,000   40,000       Assume that Wilkins issued preferred stock with a par value of $260,000 and a fair value of $500,000 for all of the outstanding shares of Granger in an acquisition business combination. What will be the balance in the consolidated Inventory and Land accounts?                         A)    $440,000, $540,000.                   B)    $440,000, $560,000.            C)    $410,000, $540,000.            D)    $410,000, $560,000.            E)    $390,000, $460,000.

Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:     Debit   Credit Cash $ 500           Accounts receivable   600           Inventory   900           Buildings (net) (5 year life)   1,600           Equipment (net) (2 year life)   1,000           Land   900           Accounts payable         $ 400   Long-term liabilities (due 12/31/22)           1,900   Common stock           1,000   Additional paid-in capital           700   Retained earnings           1,500   Total $ 5,500     $ 5,500     Net income and dividends reported by Clark for 2020 and 2021 follow:     2020 2021 Net income $ 120   $ 140   Dividends   40     50     The fair value of Clark’s net assets that differ from their book values are listed below:     Fair Value Buildings $ 1,200   Equipment   1,350   Land   1,300   Long-term liabilities   1,750     Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. Compute the consideration transferred in excess of book value acquired at January 1, 2020.              A)    $900.                   B)    $1,400.            C)    $1,900.            D)    $2,400.            E)    $2,600.             

On January 1, 2019, Dermot Company purchased 15% of the voting common stock of Horne Corp. On January 1, 2021, Dermot purchased 28% of Horne’s voting common stock. If Dermot achieves significant influence with this new investment, how must Dermot account for the change to the equity method?