ACCT 405 WEEK 5 QUIZ LATEST

1. ACCT 405 WEEK 5 QUIZ LATEST Visit Below Link, To Download This Course: https://www.tutorialsservice.net/product/acct-405-week-5-quiz-latest/ Or Email us on SUPPORT@TUTORIALSSERVICE.NET ACCT 405 Week 5 Quiz Latest ACCT405 ACCT 405 Week 5 Quiz Latest Question 1 (TCO 3) Parent sold land to its subsidiary for a gain in 20×1. The subsidiary sold the land externally for a gain in 20×3. Which of the following statements is true?      A gain will be reported on the consolidated income statement in 20×1. A gain will be reported on the consolidated income statement in 20×3. No gain will be reported on the 20×3 consolidated income statement. Only the parent company will report a gain in 20×3. The subsidiary will report a gain in 20×1. Question 2 (TCO 3) During 20×1, Vonsamek Co. sold inventory to its wholly owned subsidiary, Link Co. The inventory cost $30,000 and was sold to Link for $44,000. From the perspective of the combination, when is the $14,000 gain realized?     When the goods are sold to a third party by Link When Link pays Vonsamek for the goods When Vonsamek sold the goods to Link When the goods are used by Link Question 3 (TCO 3)

2. Pop Co. owns 80% of Cool Co., common stock par value $10. On January 1, 20×1, Cool Co. issued 10,000 additional shares of common stock for $35 per share. Pop Co. acquired 8,000 of these shares. How would this transaction affect the additional paid-in capital of the parent company?      Increase it by $28,700 Increase it by $200,000 $0 Increase it by $280,000 Increase it by $250,000 Question 4 (TCO 3) Where do dividends paid to the noncontrolling interest of a subsidiary appear on a consolidated statement of cash flows?      Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Supplemental schedule of noncash investing and financing activities Not on the consolidated statement of cash flows Question 5 (TCO 3) During 20×1, Play Inc. acquired 100% of Stray Inc. by issuing 250,000 shares of its common stock. The acquisition was announced on March 31, 20×1, when Play’s common stock was selling for $45 per share, and finalized on October 15, 20×1, when the market price of Play’s common stock was $50 per share. On October 15, 20×1, Stray’s net assets had a book value of $10,750,000. Book value equaled fair value for all recognized assets and liabilities, except land, which had a fair value $500,000 higher than book value. Stray also had unpatented technology with a fair value of $225,000 and in-process research and development with a fair value of $365,000. Which is the goodwill to be reported on Play Inc.’s December 31, 20×1, balance sheet under U.S. GAAP?     $500,000 $660,000 $1,250,000 $1,750,000 Download Now