There are two "arms" of the immune system, Innate (non-specific) and Adpative (acquired).

What are the advantages of a cell-mediated immune response?

Recall the steps involved in phagocytosis. Now, speculate on the consequenses if an organism had the ability to evade phagocytosis. Be specific as to the effects on adaptive immune response.

Write a paper describing the consolidation process when there is a less than wholly-owned subsidiary acquired at more than book value.

Also, the paper must clearly present calculations of how amounts were determined and the journal entries required to record the acquisition by the purchaser.

“What, in your opinion, is the importance of a performance management system and how would the knowledge and skills you have acquired about the performance management system in this course help you in your career as an effective manager? Use your personal examples to illustrate your reflections.”

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.

Prepare the journal entries for each of the situations above. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end of Hanson Company's accounting year. Insurance expense has an unadjusted $2,000 balance at the same point in time. Some policies that were in effect have expired. Some of those were renewed and some were not. The following policies are in effect at December 31, 2018:

Policy                                                                 Date                 Policy            Total Premium

  Type                                                               Acquired             Term         Paid when acquired

Liability                                                              1-31-17          2 years         $48,000

Auto                                                                   6-30-18             2 years             9,000

Business interruption 8-1-18              1 year                 840

1. Determine the adjusted balance in prepaid insurance at December 31, 2018.

2.Determine the amount of total insurance expense (you need not separate the expense by policy type) to report on the income statement for the year ended December 31, 2018.

Using the FASB Codification

            In this case, LinkedIn and Microsoft followed GAAP. Your task is to identify the exact part of the FASB codification that contains the applicable rules. For each question, cite the section number, and cut and paste the rule into your answer. What section of the codification requires?

1. Internally developed intangible assets should NOT usually be recorded as assets?
2. As of the date of an acquisition, the acquirer should allocate the purchase price to assets acquired based on their fair values?
3. Companies must amortize intangible assets with a definite life over their useful lives?
4. Goodwill should not be amortized?
5. Income from an acquired subsidiary should be reported by the acquirer from the date of acquisition onwards
6. A pro forma disclosure is required by an acquirer of revenues and income as if the acquisition had occurred as of the first day of the prior year.
7. Changes in accounting principles should be reflected retrospectively, by restating prior years.

TP acquired a tract of land by way of gift from his parents. His parents purchased the land in 1980 for $100,000, and gifted it to him in 2010 when it had a fair market value of $500,000. In 2012, TP built a 5 unit apartment building on the land at a cost of $500,000. Accumulated depreciation to date totals $40,000. TP has an agreement to sell the real estate for an adjusted sales price of $1,500,000. He intends to acquire like-kind replacement property in a section 1031 exchange. The purchase price of this target property will be $2,000,000. Assuming all the statutory requirements of section 1031 are met, please compute realized and recognized gain (if any) on the sale of the relinquished property, and the basis of the newly acquired target property, assuming that he goes forward with the purchase of this target property in a section 1031 like kind exchange.

1. On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary’s original cost was $200,000 and as of January 1, 2017, $20,000 in depreciation had been recorded on the subsidiary’s books. At the date of sale, the equipment had a 10-year remaining life, straight-line. It is now December 31, 2021 (5 years since the sale), and the parent still holds the equipment.

REQUIRED: Prepare the consolidation eliminating entries for 2021

2. Baracus, Inc. pays $95,000 in cash and stock to acquire 80% of the voting stock of Clover Company. The fair value of the noncontrolling interest is $21,250. The book value of the acquired company is $66,250, and no revaluations of acquired identifiable net assets are necessary.

REQUIRED:

How much is total goodwill?
What amount and percent of goodwill is allocated to the controlling interest?
What amount and percent of goodwill is allocated to the non-controlling interest?

On January 1, 2017, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $528,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was $352,000 and Rockne's assets and liabilities had a collective net fair value of $880,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $330,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $390,000 in 2017 and $490,000 in 2018. Approximately 35 percent of the inventory purchased during any one year is not used until the following year.

1. What is the noncontrolling interest's share of Rockne's 2018 income?
2. Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers.

Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton.

On January 1, 2014, Hamilton sold $2,500,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 10 percent payable every December 31. Cairns acquired 30 percent of these bonds at 96 percent of face value on January 1, 2016. Both companies utilize the straight-line method of amortization.

Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates.

a. December 31, 2016

b. December 31, 2017

c. December 31, 2018