5) Pfeifer Corporation acquired an 80% interest in Stern Corporation several years ago when the book values and fair values of Stern's assets and liabilities were equal.  At the time of acquisition, the cost of the 80% interest was equal to 80% of the book value of Stern's net assets. Separate company income statements for Pfeifer and Stern for the year ended December 31, 2011 are summarized as follows: PfeiferStern Sales Revenue$1,000,000 $600,000 Investment income from Stern85,000 Cost of Goods Sold(600,000)(300,000) Expenses(200,000)(200,000) Net Income$285,000 $100,000 During 2010, Pfeifer sold merchandise that cost $120,000 to Stern for $180,000. Half of this […]

11) What is Pouch's income from Shenley for 2012? A) $27,200 B) $29,600 C) $39,200 D) $49,000 12) Swamp Co., a 55%-owned subsidiary of Pond Inc., made the following entry to record a sale of merchandise to Pond: All Swamp sales are at 125% of cost. One-fourth of this merchandise remained in the Pond's inventory at year-end. A working paper entry to eliminate unrealized profits from consolidated inventory would include a credit to Inventory in the amount of A) $2,000. B) $2,500. C) $8,000. D) $10,000. 13) The 2011 consolidated income statement showed cost of goods sold of A) $500,000. […]

8) Sandpiper Inc. acquired a 30% interest in Shore Corporation for $27,000 cash on January 1, 2011, when Shore's stockholders' equity consisted of $30,000 of capital stock and $20,000 of retained earnings. Shore Corporation reported net income of $18,000 for 2011. The allocation of the $12,000 excess of cost over book value acquired on January 1 is shown below, along with information relating to the useful lives of the items: Overvalued receivables (collected in 2011)$(600) Undervalued inventories (sold in 2011)2,400 Undervalued building (6 years' useful life remaining at January 1, 2011)              3,600 Undervalued land900 Unrecorded patent (8 years' economic life […]

9) Barkin Corporation's accounting records include the following items, listed in no particular order, for the year ending December 31, 2015: Other Revenues and (Expenses)              Gain on Discontinued Operations              $75,000 Gain on sale of Equipment              $12,000Extraordinary Loss15,000 Loss on disposal of Equipment              5,000Cost of Goods Sold285,000 Net Sales650,000Operating Expenses120,000 The income tax rate for the company is 45%. The company had 15,000 shares of common stock outstanding during 2015, and no preferred stock. Prepare Barkin's income statement for the year ending December 31, 2015. Show how Barkin reports EPS data on its 2015 income

11.Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management. 12.The fraud triangle conditions necessary for financial statement fraud to occur are the existence of a system of internal control, the ability to invade the system, and rationalization to commit the fraud. 13.The form 10-Q contains an unaudited set of quarterly financial statements. 14.The form 10-K is the annual report that publically traded companies must file with the Securities & Exchange Commission (SEC). 15.Sales by major product category is a required financial statement disclosure. 16.Information […]