Homework Answers
An upstream sale of inventory is a sale :---- made by the investee to the investor . (ans.-- 2nd. option)
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An upstream sale of inventory is a sale: Multiple Choice between subsidiaries owned by a common...
question 2 Question 5 2-On Jan 2, 2020, Parent sells to its wholly owned investee equipment...
question 2
Question 5
2-On Jan 2, 2020, Parent sells to its wholly owned investee equipment that had cost $250,000. The selling price was $180,000 and accumulated depreciation on that date was $75,000. The subsidiary depreciates the equipment over its remaining life of 10 years. Required: a. Compute the difference between the annual depreciation expense when Parent owned the equipment and depreciation expense recorded by the subsidiary. b. Compute the gain on sale recorded by the parent. c. Prepare the...
Part 1 - Multiple Choice: 45 Points (15 Questions, 3 Points each) Please circle the lette...
Part 1 - Multiple Choice: 45 Points (15 Questions, 3 Points each) Please circle the lette best completes each question. 1) A typical investment to house excess cash until needed is a. stocks of companies in a related industry. b. debt securities. c. low-risk, highly liquid securities. d. stock securities. 2) At the time of acquisition of a debt investment, a. no journal entry is required. b. the historical cost principle applies. c. the Stock Investments account is debited when...
One difference between periodic and perpetual inventory systems is: Multiple Choice Cost of goods sold is...
One difference between periodic and perpetual inventory systems is: Multiple Choice Cost of goods sold is always significantly higher under a perpetual system. Cost of goods sold is not recorded under a perpetual system until the end of the period. Cost of goods sold is always significantly higher under a periodic system. Cost of goods sold is not recorded under a periodic system until the end of the period.
Answer following multiple choice questions: opps Publishing, Inc., contracts for a sale of textbooks to University...
Answer following multiple choice questions:
opps Publishing, Inc., contracts for a sale of textbooks to University Bookstores, Inc. (UB). Value Shipping I Company, the carrier, transports the books to Wit Warehouse Company. Topps' right to stopP delivery is lost when UBI's rights to the goods a. the appropriate government agency only. b. Value only c. Wit only. d. Value or Wit are acknowledged by 41. Garden Vegetable Farm and Hungry Restaurant, Inc., enter into a contract for a sale of...
Loans made between borrowers and lenders are 1 Multiple Choice 84 nts liabilities to the lenders...
Loans made between borrowers and lenders are 1 Multiple Choice 84 nts liabilities to the lenders and assets to the borrowers since the borrower obtains the funds. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders. not part of either parties' assets or liabilities until the loans are repaid liabilities to both the lenders and the borrowers. Financial intermediaries 2 Multiple Choice 2.94 points O can be banks, but not all financial...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called the bond indenture A) True B) False 2.One of the similarities of bond and equity financing is that both dividends and equity distribution payments are tax deductible. C) True D) False 3. Interest on bonds is tax deductible. E) True >F) False 2. The relationship between the market rate of a bond and the rate of return on the borrowed funds affects the company's...
Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent c...
Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company acquired a subsidiary on January 1, 2010. The purchase price was 500,000 million in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date and that excess was assigned to the following AAP assets Original Original Useful Amount Life (years) AAP Asset Property, plant and equipment (PPE), net Customer list Royalty agreement Goodwill $100,000 185,000 115,000 100,000 $500,000 20 indefinite The AAP...
Multiple Choice Questions 1. Gaw Company owns 15% of the common stock of Trace Corporation and...
Multiple Choice Questions 1. Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income of $110,000 for 2008 and paid dividends of $60,000 on October 1, 2008. How much income should Gaw recognize on this investment in 2008? A. $16,500 Noinfluence B.$9,000 C. $25,500 (If company makes a loss or Profit doesn't D. $7,500 E. $50,000 60,000 X 15.. 2. Yaro Company owns 30% of...
Required Answer the following multiple-choice questions: a. Which of the following is not considered to be...
Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a nonrecurring item? P 8-13 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of change in accounting principle 4. Interest expense 5. None of the above. rm? b. Ideally,which of these ratios will indicate the highest return for an individual 1. Return on assets 2. Return on assets variation 3. Return on investments 4. Return on total equity S. Return on common equity...
50. Prepare consolidation spreadsheet for intercompany sale of equipment-Equity method Assume a parent company acquired its...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
question 2
Question 5
2-On Jan 2, 2020, Parent sells to its wholly owned investee equipment that had cost $250,000. The selling price was $180,000 and accumulated depreciation on that date was $75,000. The subsidiary depreciates the equipment over its remaining life of 10 years. Required: a. Compute the difference between the annual depreciation expense when Parent owned the equipment and depreciation expense recorded by the subsidiary. b. Compute the gain on sale recorded by the parent. c. Prepare the...
Part 1 - Multiple Choice: 45 Points (15 Questions, 3 Points each) Please circle the lette best completes each question. 1) A typical investment to house excess cash until needed is a. stocks of companies in a related industry. b. debt securities. c. low-risk, highly liquid securities. d. stock securities. 2) At the time of acquisition of a debt investment, a. no journal entry is required. b. the historical cost principle applies. c. the Stock Investments account is debited when...
Answer following multiple choice questions:
opps Publishing, Inc., contracts for a sale of textbooks to University Bookstores, Inc. (UB). Value Shipping I Company, the carrier, transports the books to Wit Warehouse Company. Topps' right to stopP delivery is lost when UBI's rights to the goods a. the appropriate government agency only. b. Value only c. Wit only. d. Value or Wit are acknowledged by 41. Garden Vegetable Farm and Hungry Restaurant, Inc., enter into a contract for a sale of...
Loans made between borrowers and lenders are 1 Multiple Choice 84 nts liabilities to the lenders and assets to the borrowers since the borrower obtains the funds. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders. not part of either parties' assets or liabilities until the loans are repaid liabilities to both the lenders and the borrowers. Financial intermediaries 2 Multiple Choice 2.94 points O can be banks, but not all financial...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called the bond indenture A) True B) False 2.One of the similarities of bond and equity financing is that both dividends and equity distribution payments are tax deductible. C) True D) False 3. Interest on bonds is tax deductible. E) True >F) False 2. The relationship between the market rate of a bond and the rate of return on the borrowed funds affects the company's...
Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company acquired a subsidiary on January 1, 2010. The purchase price was 500,000 million in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date and that excess was assigned to the following AAP assets Original Original Useful Amount Life (years) AAP Asset Property, plant and equipment (PPE), net Customer list Royalty agreement Goodwill $100,000 185,000 115,000 100,000 $500,000 20 indefinite The AAP...
Multiple Choice Questions 1. Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income of $110,000 for 2008 and paid dividends of $60,000 on October 1, 2008. How much income should Gaw recognize on this investment in 2008? A. $16,500 Noinfluence B.$9,000 C. $25,500 (If company makes a loss or Profit doesn't D. $7,500 E. $50,000 60,000 X 15.. 2. Yaro Company owns 30% of...
Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a nonrecurring item? P 8-13 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of change in accounting principle 4. Interest expense 5. None of the above. rm? b. Ideally,which of these ratios will indicate the highest return for an individual 1. Return on assets 2. Return on assets variation 3. Return on investments 4. Return on total equity S. Return on common equity...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
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