SOLUTIONS MANUAL for Advanced Financial Accounting, 13th Edition. By Theodore Christensen, David Cottrell and Cassy Budd _ Complete Download.

,TABLE OF CONTENT
ajajajajaj
aj aj




PREFACE1. Intercorporate Acquisitions and Investments in Other Entities
aj aj aj aj aj aj aj



2. Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with No Differential
aj aj aj aj aj aj aj aj aj aj aj aj



3. The Reporting Entity and the Consolidation of Less-Than-Wholly-Owned Subsidiaries with NoDifferential
aj aj aj aj aj aj aj aj aj aj aj



4. Consolidation of Wholly Owned Subsidiaries Acquired at More Than Book Value
aj aj aj aj aj aj aj aj aj aj aj



5. Consolidation of Less-Than-Wholly-Owned Subsidiaries Acquired at More Than Book Value
aj aj aj aj aj aj aj aj aj aj



6. Intercompany Inventory Transactions
aj aj aj



7. Intercompany Transfers of Services and Noncurrent Assets
aj aj aj aj aj aj aj



8. Intercompany Indebtedness
aj aj



9. Consolidation Ownership Issues
aj aj aj



10. Additional Consolidation Reporting Issues
aj aj aj aj



11. Multinational Accounting: Foreign Currency Transactions and Financial Instruments
aj aj aj aj aj aj aj aj



12. Multinational Accounting: Issues in Financial Reporting and Translation of Foreign Entity Statements
aj aj aj aj aj aj aj aj aj aj aj aj



13. Segment and Interim Reporting
aj aj aj aj



14. SEC Reporting
aj aj



15. Partnerships: Formation, Operation, and Changes in Membership
aj aj aj aj aj aj aj



16. Partnerships: Liquidation
aj aj



17. Governmental Entities: Introduction and General Fund Accounting
aj aj aj aj aj aj aj



18. Governmental Entities: Special Funds and Governmentwide Financial Statements
aj aj aj aj aj aj aj aj



19. Not-for-Profit Entities
aj aj



20. Corporations in Financial Difficulty
aj aj aj aj




Chapter 1 aj Intercorporate Acquisitions and Investments in Other Entities a j a j aj a j a j a j




1) Assuming no impairment in value prior to transfer, assets transferred by a parent company t
a j a j a j aj aj a j aj aj aj a j aj a j a j aj



oanother entity it has created should be recorded by the newly created entity at the assets':
ja aj aj a j aj aj aj aj aj aj aj aj aj aj aj aj



A) cost to the parent company. aj aj aj a j



B) book value on the parent company's books at the date of transfer.
a j aj aj aj a j aj aj aj aj aj aj



C) fair value at the date of transfer. a j aj aj aj aj aj



D) fair value of consideration exchanged by the newly created entity.
aj aj aj aj aj aj aj aj aj




Answer: B Diffic aj aj



ulty: 1 Easy aj aj



Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities Learning
aj aj aj aj aj aj aj aj aj aj aj aj



Objective: 01-
01 Understand and explain the reasons for and different methods of business expansion, the typ
aj aj aj aj aj aj aj aj aj aj aj a j a j aj



es of organizational structures, and the types of acquisitions.; 01 -
a j a j a j a j a j a j a j aj aj aj



03 Make calculations and prepare journal entries for the creation of a business entity.
aj aj aj aj aj aj aj aj aj aj aj aj aj



Bloom's:
Remember AACSB: aj



Reflective Thinking AICPA:
a j aj ja



FN Decision Making aj aj




2) Given the increased development of complex business structures, which of the followingregu
aj aj aj aj aj aj aj aj aj aj aj ja



lators is responsible for the continued usefulness of accounting reports?
aj aj aj aj aj aj aj aj aj



A) Securities and Exchange Commission (SEC) a j a j a j a j



B) Public Company Accounting Oversight Board (PCAOB) a j a j aj a j aj



C) Financial Accounting Standards Board (FASB) a j a j a j a j

,D) All of the other answers are correct
aj aj a j aj aj aj




Answer: D Diffic aj aj



ulty: 1 Easy aj aj



Topic: An Introduction to Complex Business Structures
aj a j a j a j a j



Learning Objective: 01- aj



01 Understand and explain the reasons for and different methods ofbusiness expansion, the type
aj aj aj aj aj aj aj aj aj aj ja aj a j aj



s of organizational structures, and the types of acquisitions.
aj aj a j aj aj aj aj aj



Bloom's:
Remember AACSB: aj



Reflective T hinking AICPA:
a j aj ja



FN Reporting aj




3) A business combination in which the acquired company's assets and liabilities are combinedwith
aj aj aj aj aj aj aj aj aj aj aj aj ja aj



those of t he acquiring company into a single entity is defined as:
aj aj aj aj aj aj aj aj aj aj aj



A) Stock acquisition aj



B) Leveraged buyout aj



C) Statutory Merger aj



D) Reverse statutory rollup a j aj

, Answer: C Diffic aj aj



ulty: 1 Easy aj aj



Topic: Organizational Structure and Financial Reporting a j a j a j a j



Learning Objective: 01- aj



04 Understand a nd explain the differences between different forms ofbusiness combinations.
aj aj aj aj aj aj aj aj aj ja aj



Bloom's:
Remember AACSB: aj



Reflective Thinking AICPA:
a j aj ja



FN Decision Making aj aj




4) In which of the following situations do accounting standards not require that the financia
aj aj aj a j a j aj a j a j a j aj a j a j a j



lstatements of the parent and subsidiary be consolidated?
ja aj aj aj aj aj aj aj



A) A corporation creates a new 100 percent owned subsidiary
aj aj aj aj aj aj aj aj



B) A corporation purchases 90 percent of the voting stock of another company
aj aj aj a j a j aj a j a j a j aj a j



C) A corporation has both control and majority ownership of an unincorporated company
aj a j a j aj aj a j a j a j aj aj a j



D) A corporation owns less-than a controlling interest in an unincorporated company
aj a j a j aj a j a j a j aj aj a j




Answer: D Diffic aj aj



ulty: 1 Easy aj aj



Topic: Organizational Structure and Financial Reporting a j a j a j a j



Learning Objective: 01- aj



01 Understand and explain the reasons for and different methods ofbusiness expansion, the types
aj aj aj aj aj aj aj aj aj aj ja aj a j aj a



of organizational structures, and the types of acquisitions.
j aj a j aj aj aj aj aj



Bloom's:
Remember AACSB: aj



Reflective T hinking AICPA:
a j aj ja



FN Decision Making aj aj




During its inception, Devon Company purchased land for $100,000 and a building for $180,000. Aft
aj aj aj aj aj aj aj aj aj aj aj aj aj aj



er exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary,Regan
aj aj aj aj aj aj aj aj aj aj aj aj aj aj aj aj ja aj



Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-
aj aj aj aj aj aj aj aj aj aj aj aj aj aj



line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal re
aj aj aj aj aj aj aj aj aj aj aj aj aj aj aj aj



vealed that the building has a fair value of $200,000.
aj aj aj aj aj aj aj aj aj




5) Based on the information provided, at the time of the transfer, Regan Company should record:
a j aj a j aj a j aj aj a j aj a j a j aj a j a j



A) Building at $180,000 and no accumulated depreciation. aj a j aj a j a j a j



B) Building at $162,000 and no accumulated depreciation. aj a j a j a j a j a j



C) Building at $200,000 and accumulated depreciation of $24,000. a j a j a j a j a j a j aj



D) Building at $180,000 and accumulated depreciation of $18,000. a j a j a j a j a j a j a j




Answer: D Difficulty ajaj aj



: 2 Medium
aj a j



Topic:
Valuation of Business Entities; Accounting for Internal Expansion: Creating Busines a j aj aj a j a j a j a j a j a j



s Entities
aj



Learning Objective: 01- aj



04 Understand and explain the differences between different forms of business combinations.; 01-
aj aj aj aj aj aj aj aj aj aj a j a j



03 Make calculations and prepare journal entries for the creation of a business entity.
a j a j aj a j a j aj a j a j a j a j aj aj aj



Bloom's:
Understand AACSB aj



: Analytical T hinking AICPA:
a j aj ja