Tugas Akuntansi Keuangan Lanjutan 2

Nama : Adelia Ana Bella

NIM : 1613120001
• E 10-6 ( Preferred Stock)

1. Fair value – book value differentials

Cost of preferred stock $ 6.500

Book value of preferred 60.000 shares($100 par + (6.900)
call premium $5 + dividend arrearage $10).
Excess book value of preferred stock over cost $ (400)
Cost of common stock $ 35.000
Implied total fair value($35.000 / 70%) $ 50.000
Book value of common($60.000 total equity - 48.500
preferred equity$11.500)
Excess fair value over book value of common $ 1.500

2. The $400.000 negative differential should be treated as an increase in the

preferred investment and other paid-in capital accounts on Pay’s books. Pay will
record it’s investment in set preferred as follows :

Investment in set preferred 6.500

Cash 6.500
To record purchase of 60% of Set’s preferred stock

Investment in set preferred 400

Other paid-in capital 400
To adjust other paid-in capital for the constructive!retirement of 60% of Set’s
preferred shares.
• E 10-16 (Tax)

1. Separate company tax returns

Pit’s income taxes currently payable :

Pretax accounting income $300.000 x 34% tax rate $102.000
Sol’s income taxes currently payable :
Pretax counting income $100.000 x 34% tax rate 34.000
Income taxes currently payable 136.000
Less : Increase in deferred tax asset ($200.000 x 34%) (
68.000)
Consolidated income tax expense $ 68.000

2. Consolidated tax return

Combined pretax accounting income $400.000

Less : Unrealized gain on downstream call of land (200.000)
Taxable income 200.000
Tax rate 34%
Consolidated income tax expense $ 68.000

3.

Separate tax returns

Pit’s income taxes currently payable :
Pretax accounting income $300.000 x 34% tax rate $102.000
Sol’s income taxes currently payable :
Pretax counting income $100.000 x 34% tax rate 34.000
Income taxes currently payable 136.000
Consolidated tax return
Combined pretax accounting income $400.000
Less : Unrealized gain on downstream call of land (200.000)
Taxable income 200.000
Tax rate 34%
Income taxes currently payable $ 68.000

Note : No tax is paid on intercompany profit when consolidated returns are filed.