Accounting Case Problem-For Prof.Haseeb Only

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I am requesting the following case problems done following the steps outlined and due by July 26th by 5:30 pm Eastern time.

It needs to be written out with steps 1-5 for accounting research: 

1. Identify the issue/s

2. Collect the Evidence

3. Analyze and evaluate alternatives

4. Develop Conclusion

5. Communicate results and document

 

Case Problem #1

Jane Co. owns 90% of the common stock of Dun Corp and 100% of the common stock of Beech Corp.  On December 30, Dun and Beech each declared a cash dividend of $100,000 for the current year. What is the total amount of dividends that should be reported in the December 31 consolidated financial statements of Jane and its subsidiaries, Dun and Beech?

Discuss your answer with proper citations to the tax code.

 

Case Problem #2

Acquiree Co is a 90% owned subsidiary of Acquirer Co. The carrying amounts of the non controlling interest and the subsidiary ar $1,000 and $10000,000 respectively. The subsidiary's fair value is $15,000,000. Acquirer transferred part of its interest to Third Co. on December 31 for $12,000,000 in cash but retained a non controlling interest of 20% of Acquiree's voting interests. The fair value of the retained interest, which gives Acquirer significant influence is $3,000,000. The fair values and carrying amounts are as of December 31.

How must Acquirer account for this transaction?

Discuss your answer with proper citations to the tax code.

    • 5 years ago
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