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

,TABLE OF CONTENT
DTDTDTDTDT
DT DT




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



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



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



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



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



6. Intercompany Inventory Transactions
DT DT DT



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



8. Intercompany Indebtedness
DT DT



9. Consolidation Ownership Issues
DT DT DT



10. Additional Consolidation Reporting Issues
DT DT DT DT



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



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



13. Segment and Interim Reporting
DT DT DT DT



14. SEC Reporting
DT DT



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



16. Partnerships: Liquidation
DT DT



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



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



19. Not-for-Profit Entities
DT DT



20. Corporations in Financial Difficulty
DT DT DT DT




Chapter 1 Intercorporate Acquisitions and Investments in Other Entities
DT D T D T DT D T D T D T




1) Assuming no impairment in value prior to transfer, assets transferred by a parent comp
DT D T D T DT DT DT DT DT DT D T DT D T D T



any toanother entity it has created should be recorded by the newly created entity at the ass
DT D
T DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT



ets':
A) cost to the parent company. DT DT DT DT



B) book value on the parent company's books at the date of transfer.
D T DT DT DT D T DT DT DT DT DT DT



C) fair value at the date of transfer.
DT DT DT DT DT DT



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




Answer: B Diffi DT DT



culty: 1 Easy DT DT



Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities Lear
DT DT DT DT DT DT DT DT DT DT DT



ning Objective: DT 01-
01 Understand and explain the reasons for and different methods of business expansion, th
DT DT DT DT DT DT DT DT DT DT DT DT DT



e types of organizational structures, and the types of acquisitions.; 01 -
DT DT D T D T DT D T DT DT DT DT DT



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



Bloom's:
Remember AACSB DT



: Reflective Thinking AICPA:
D T DT D
T



FN Decision Makin DT DT



g

2) Given the increased development of complex business structures, which of the following
DT DT DT DT DT DT DT DT DT DT DT D
T



regulators is responsible for the continued usefulness of accounting reports?
DT DT DT DT DT DT DT DT DT



A) Securities and Exchange Commission (SEC) DT D T DT DT

,B) Public Company Accounting Oversight Board (PCAOB)
DT D T DT D T DT



C) Financial Accounting Standards Board (FASB)
D T D T DT DT



D) All of the other answers are correct
DT DT DT DT DT DT




Answer: D Diffi DT DT



culty: 1 Easy DT DT



Topic: An Introduction to Complex Business Structures
DT DT DT DT D T



Learning Objective: 01- DT



01 Understand and explain the reasons for and different methods ofbusiness expansion, the
DT DT DT DT DT DT DT DT DT DT D
T DT DT



DTtypes of organizational structures, and the types of acquisitions.
DT DT DT DT DT DT DT DT



Bloom's:
Remember AACSB DT



: Reflective Thinking AICPA
D T DT D
T



: FN Reporting DT




3) A business combination in which the acquired company's assets and liabilities are combined
DT DT DT DT DT DT DT DT DT DT DT DT D
T



with those of the acquiring company into a single entity is defined as:
DT DT DT DT DT DT DT DT DT DT DT DT



A) Stock acquisition DT



B) Leveraged buyout DT



C) Statutory Merger DT



D) Reverse statutory rollup D T DT

, Answer: C Diffi DT DT



culty: 1 Easy DT DT



Topic: Organizational Structure and Financial Reporting DT D T D T DT



Learning Objective: 01- DT



04 Understand and explain the differences between different forms ofbusiness combinations.
DT DT DT DT DT DT DT DT DT D
T DT



Bloom's:
Remember AACSB DT



: Reflective Thinking AICPA:
D T DT D
T



FN Decision Makin DT DT



g

4) In which of the following situations do accounting standards not require that the fin
DT DT DT DT D T DT DT D T DT DT DT D T DT



ancialstatements of the parent and subsidiary be consolidated?
D
T DT DT DT DT DT DT DT



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



B) A corporation purchases 90 percent of the voting stock of another company
DT DT DT D T D T DT DT DT DT DT D T



C) A corporation has both control and majority ownership of an unincorporated company
DT D T DT DT DT D T DT D T DT DT DT



D) A corporation owns less-than a controlling interest in an unincorporated company
DT DT D T DT D T D T D T DT DT DT




Answer: D Diffi DT DT



culty: 1 Easy DT DT



Topic: Organizational Structure and Financial Reporting DT D T D T DT



Learning Objective: 01- DT



01 Understand and explain the reasons for and different methods ofbusiness expansion, the t
DT DT DT DT DT DT DT DT DT DT D
T DT DT DT



ypes of organizational structures, and the types of acquisitions.
DT DT DT DT DT DT DT DT



Bloom's:
Remember AACSB DT



: Reflective Thinking AICPA:
D T DT D
T



FN Decision Makin DT DT



g

During its inception, Devon Company purchased land for $100,000 and a building for $180,00
DT DT DT DT DT DT DT DT DT DT DT DT DT



0. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsid
DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT



iary,Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon
D
T DT DT DT DT DT DT DT DT DT DT DT DT DT DT



uses straight- DT



line depreciation. Useful life for the building is 30 years, with zero residual value. An apprai
DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT



sal revealed that the building has a fair value of $200,000.
DT DT DT DT DT DT DT DT DT DT




5) Based on the information provided, at the time of the transfer, Regan Company should record:
DT DT DT DT D T DT DT DT DT DT D T DT DT D T



A) Building at $180,000 and no accumulated depreciation.
DT D T DT D T D T D T



B) Building at $162,000 and no accumulated depreciation.
DT D T D T DT DT D T



C) Building at $200,000 and accumulated depreciation of $24,000.
D T D T D T DT D T D T DT



D) Building at $180,000 and accumulated depreciation of $18,000.
D T D T D T D T D T D T DT




Answer: D Difficult DTDT DT



y: 2 Medium
DT D T



Topic:
Valuation of Business Entities; Accounting for Internal Expansion: Creating Busi
DT DT DT D T D T D T D T D T D T



ness Entities DT



Learning Objective: 01- DT



04 Understand and explain the differences between different forms of business combinations.
DT DT DT DT DT DT DT DT DT DT DT



; 01-03 Make calculations and prepare journal entries for the creation of a business entity.
DT DT DT DT D T DT DT D T D T DT DT DT DT DT