ACCT 405 FULL COURSE LATEST

1. ACCT 405 FULL COURSE LATEST Visit Below Link, To Download This Course: https://www.tutorialsservice.net/product/acct-405-full-course-latest/ Or Email us on SUPPORT@TUTORIALSSERVICE.NET ACCT 405 Full Course Latest ACCT405 ACCT 405 Week 1 Discussion Latest Week 1: The Equity Method and Accounting Changes What is the essence of the equity method? When should you use the equity method and why? What are some of the limitations of the equity method? (CO 1) ACCT 405 Week 2 Discussion Latest Week 2: Fas 141r and Acquisition Method Summarize what you consider to be the important aspects of FAS 141R and tell the class the top five things you learned by reading the initial pages of this new standard. How does FAS 141R compare to FAS 141? In your opinion, what really changed? (CO 2) ACCT 405 Week 3 Discussion Latest Week 3: Internal Investment Accounting Alternatives Compare and contrast the equity method, the initial value method, and the partial equity method for internal investment accounting. What are the differences? How do those differences affect reporting of the investment and income account? (Before the weekend, try to complete the Comprehensive Illustration problem beginning on page 117, and tell the class how the different methods affected the outcome.) (CO 2) ACCT 405 Week 4 Discussion Latest

2. Week 4: Comprehensive Illustration Consolidations: Complete one of the required elements of the Comprehensive Illustration beginning on page 175 and check your work against the provided solution. Explain the process to the class in your own words and then show us your work, worksheets, and entries. Review the work of one other student who prepared an answer on a different element of the problem, and provide a critique using FAS 160 as a reference. (CO 3) ACCT 405 Week 5 Discussion Latest Week 5: Intercompany and Land Transactions Check out page 207 of your textbook and explain one item from the section titled The Development of Consolidated Totals. Note the item and tell the class details of how that item would be adjusted at the end of a reporting cycle. Why is it important that intercompany transactions are eliminated prior to issuing financial reports? In answering these questions, consider your readings, lecture, and your review of the Becker materials. (CO 3) ACCT 405 Week 6 Discussion Latest Week 6: Budgets in a Foreign Currency and Currency Translation You have just won a free trip to the destination of your choice and all airline or other transportation costs are provided (OK, this is just pretend!), but you need to budget for your expenses during the 3 days you will be there, because you want to be able to buy the correct amount of foreign currency. Using either the direct method or indirect method, prepare a budget to include your hotel, food, and entertainment costs for the 3 days. Select one of the recommended locations listed below and then, using the appropriate foreign currency conversion rate for the end of month prior to your departure date (today), tell the class the currency exchange method, currency need for your location, quoted price, Internet link to that quote, budget amount in U.S. dollars, and the amount of foreign currency you will need when you arrive. You may choose any of the following locations: Paris, France; London, England; Sydney, Australia; Hong Kong, China; or Agra, India. For historical currency quotes, http://www.x-rates.com/ (Links to an external site). Links to an external site. is one recommended site.

3. For your response discussion requirement, critically examine the budget and currency calculations of another student. Tell that student what he or she did correctly or incorrectly. (CO 4) ACCT 405 Week 7 Discussion Latest Week 7: Dissolving a Partnership Select one entry presented in the textbook, dealing with the dissolution of partnerships, and explain that entry to the class. Please try to use an entry not already explained by your classmates. Be ready to answer all questions concerning that entry using what you have learned from your reading, lecture, and Becker materials (CO 5). ACCT 405 Week 1 Homework Latest Chapter 1: Problems 1, 3, 5, 9, 10, and 11. 11. Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $54,000 and then sells it to Watkins for $90,000. At the end of the year, Watkins still holds only $20,000 of merchandise. What amount of unrealized gross profit must Panner defer in reporting this investment using the equity method? 10. Perez, Inc., applies the equity method for its 25 percent investment in Senior, Inc. During 2013, Perez sold goods with a 40 percent gross profit to Senior. Senior sold all of these goods in 2013. How should Perez report the effect of the intra-entity sale on its 2013 income statement? 9. Goldman Company reports net income of $140,000 each year and pays an annual cash dividend of $50,000. The company holds net assets of $1,200,000 on January 1, 2012. On that date, Wallace purchases 40 percent of the outstanding stock for $600,000, which gives it the ability to significantly influence Goldman. At the purchase date, the excess of Wallace’s cost over its proportionate share of Goldman’s book value was assigned to goodwill. What is the Investment in Goldman Company balance (equity method) in Wallace’s financial records on December 31, 2014? 5. When an investor elects the fair-value option for a significant influence investment, cash dividends received by the investor from the investee should be recorded as 3. Sisk Company has owned 10 percent of Maust, Inc., for the past several years. This ownership did not allow Sisk to have significant influence over Maust. Recently, Sisk acquired an additional 30 percent of Maust and now will use the equity method. How will the investor report this change?

4. 1-When an investor uses the equity method to account for investments in common stock; cash dividends received by the investor from the investee should be recorded as ACCT 405 Week 2 Homework Latest Chapter 2: Problems 3, 4, 11, and 12 3. What is a statutory merger?     A merger approved by the Securities and Exchange Commission. An acquisition involving the purchase of both stock and assets. A takeover completed within one year of the initial tender offer. A business combination in which only one company continues to exist as a legal entity. 4. FASB ASC 805, Business Combinations, provides principles for allocating the fair value of an acquired business. When the collective fair values of the separately identified assets acquired and liabilities assumed exceed the fair value of the consideration transferred, the difference should be:     Recognized as an ordinary gain from a bargain purchase. Treated as negative goodwill to be amortized over the period benefited, not to exceed 40 years. Treated as goodwill and tested for impairment on an annual basis. Applied pro rata to reduce, but not below zero, the amounts initially assigned to specific noncurrent assets of the acquired firm. 11. What should Beasley record as total liabilities incurred or assumed in connection with the Donovan merger?     $15,000 $75,000 $95,000 $150,000 12. How much should Beasley record as total assets acquired in the Donovan merger?     $400,000 $420,000 $410,000 $480,000 ACCT 405 Week 3 Homework Latest Chapter 3: Problems 4, 6, 9, and 17 ACCT 405 Week 4 Homework Latest

5. Chapter 4: Problems 1, 4, 8, 11 & 38a. 1. What is a basic premise of the acquisition method regarding accounting for a noncontrolling interest? a. Consolidated financial statements should be primarily for the benefit of the parent company’s stockholders. b. Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry. c. A subsidiary is an indivisible part of a business combination and should be included in its entirety regardless of the degree of ownership. d. Consolidated financial statements should not report a noncontrolling interest balance because these outside owners do not hold stock in the parent company. 4. On January 1, 2011, Brendan, Inc., reports net assets of$760,000 although equipment (with afour-year life) having a book value of$440,000 is worth$500,000 and an unrecorded patent is valued at$45,000. Hope Corporation pays$692,000 on that date for an80 percent ownership in Brendan. If the patent is to be written off over a10-year period, at what amount should it be reported on consolidated statements at December 31, 2012? a. $28,800. b. $32,400. c. $36,000. d. $40,500. 8. Assuming that Pride, in its internal records, accounts for its investment in Star using the equity method, what is Pride’s share of consolidated retained earnings at January 1, 2013? a. $250,000. b. $286,000. c. $315,000. d. $360,000. 11. A parent buys 32 percent of a subsidiary in one year and then buys an additional 40 percent in the next year. In a step acquisition of this type, the original 32 percent acquisition should be

6. a. Maintained at its initial value. b. Adjusted to its equity method balance at the date of the second acquisition. c. Adjusted to fair value at the date of the second acquisition with a resulting gain or loss recorded. d. Adjusted to fair value at the date of the second acquisition with a resulting adjustment to additional paid-in capital. 38. Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2011. Adams paid a total of $603,000 in cash for these shares. The 10 percent no controlling interest shares traded on a daily basis at fair value of $67,000 both before and after Adams’s acquisition. On December 31, 2011, Barstow had the following account balances: a. Prepare schedules for acquisition-date fair-value allocations and amortizations for Adams’s investment in Barstow. ACCT 405 Week 5 Homework Latest Chapter 5: Problems: 1, 2, 3, 9, and 16 Chapter 6: No assigned problems 1. What is the primary reason we defer financial statement recognition of gross profits on intra-entity sales for goods that remain within the consolidated entity at year-end? 2.King Corporation owns 80 percent of Lee Corporation’s common stock. During October, Lee sold merchandise to King for $100,000. At December 31, 50 percent of this merchandise remains in King’s inventory. Gross profit percentages were 30 percent for King and 40 percent for Lee. The amount of unrealized intra-entity profit in ending inventory at December 31 that should be eliminated in the consolidation process is 3. In computing the noncontrolling interest’s share of consolidated net income, how should the subsidiary’s net income be adjusted for intra-entity transfers? 9. Wallton Corporation owns 70 percent of the outstanding stock of Hastings, Incorporated. On January 1, 2011, Wallton acquired a building with a 10-year life for $300,000. Wallton anticipated no salvage value, and the building was to be depreciated on the straight-line basis. On January 1, 2013, Wallton sold this building to Hastings for $280,000. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2013, how does this transfer affect the computation of consolidated net income?

7. 16. Following are several figures reported for Preston and Sanchez as of December 31, 2013: Preston acquired 70 percent of Sanchez in January 2012. In allocating the newly acquired subsidiary’s fair value at the acquisition date, Preston noted that Sanchez had developed a customer list worth $65,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Sanchez’s book value was attributed to goodwill. During 2013, Sanchez sells inventory costing $120,000 to Preston for $160,000. Of this amount, 20 percent remains unsold in Preston’s warehouse at year-end. For Preston’s consolidated reports, determine the following amounts to be reported for the current year.      Inventory Sales Cost of Goods Sold Operating Expenses Noncontrolling Interest in the Subsidiary’s Net Income ACCT 405 Week 6 Homework Latest Chapter 7: Problem 11 Chapter 8: Problems 1, 2, 3, 6, 7, and 17 ACCT 405 Week 7 Homework Latest Chapter 9: Problems 1, 2, 3, 4, 5, and 6. ACCT 405 Week 1 Quiz Latest Question 1 (TCO 1) Which of the following results in a decrease in the equity in investee income account when applying the equity method?     Dividends paid by the investor Net income of the investee Unrealized gain on intercompany inventory transfers for the current year Unrealized gain on intercompany inventory transfers for the prior year Question 2 (TCO 1) In a situation where the investor exercises significant influence over the investee, which of the following entries is not actually posted to the books of the investor? (1) Debit to the investment account and a credit to the equity in investee income account

8. (2) Debit to cash (for dividends received from the investee) and a credit to dividend revenue (3) Debit to cash (for dividends received from the investee) and a credit to the investment account      Entries 1 and 2 Entries 2 and 3 Entry 1 only Entry 2 only Entry 3 only Question 3 (TCO 1) A company should always use the equity method to account for an investment if      it has the ability to exercise significant influence over the operating policies of the investee. it owns 30% of another company’s stock. it has a controlling interest (more than 50%) of another company’s stock. the investment was made primarily to earn a return on excess cash. it does not have the ability to exercise significant influence over the operating policies of the investee. Question 4 (TCO 1) George Company owns 15% of the common stock of Thomas Corporation and used the fair-value method to account for this investment. Thomas reported net income of $110,000 for the year 20×1 and paid dividends of $60,000 on October 1, 20×1. How much income should George recognize on this investment in 20×1?      $16,500 $9,000 $25,500 $7,500 $60,000 Question 5 (TCO 1) According to FAS 159,   all entities may elect the fair value option. the statement permits all entities to choose to measure eligible items at fair value at specified dates. the fair value option may be applied instrument by instrument with a few exceptions. FAS 159 is similar to IAS 39 but is not identical.   ACCT 405 Week 2 Quiz Latest

9. Question 1 (TCO 2) Which of the following is a characteristic of a business combination that should be accounted for as an acquisition?    The combination must involve the exchange of equity securities only. The transaction establishes an acquisition fair value basis for the company being acquired. The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company. The transaction may be considered to be the uniting of the ownership interests of the companies involved. The acquired subsidiary must be smaller in size than the acquiring parent.   Question 2 (TCO 2) According to SFAS No. 141, the pooling of interest method for business combinations      is preferred to the purchase method. is allowed for all new acquisitions. is no longer allowed for business combinations after June 30, 2001. is no longer allowed for business combinations after December 31, 2001. is only allowed for large corporate mergers, such as Exxon and Mobil. Question 3 (TCO 2) Which of the following is a characteristic of a business combination that should be accounted for as a purchase?   The transaction clearly establishes an acquisition price for the company being acquired. The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company. The transaction may be considered to be the uniting of the ownership interests of the companies involved. The acquired subsidiary must be smaller in size than the acquiring parent.   Question 4 (TCO 2) In a transaction accounted for using the purchase method, where cost exceeds book value, which statement is true for the acquiring company with regard to its investment?  Net assets of the acquired company are revalued to their fair values, and any excess of cost over fair value is allocated to goodwill. Net assets of the acquired company are maintained at book value, and any excess of cost over book value is allocated to goodwill. Assets are revalued to their fair values. Liabilities are maintained at book values. Any excess is allocated to goodwill. Long-term assets are revalued to their fair values. Any excess is allocated to goodwill.   

10. Question 5 (TCO 2) Plenty Corp. paid $300,000 for the outstanding common stock of Shirley Co. At that time, Shirley had the following condensed balance sheet. (Carrying amounts) Current assets: $40,000 Plant and equipment, net: $380,000 Liabilities: $200,000 Stockholders’ equity: $220,000 The fair value of the plant and equipment was $60,000 more than its recorded carrying amount. The fair values and carrying amounts were equal for all other assets and liabilities. Which amount of goodwill, related to Shirley’s acquisition, should Plenty report in its consolidated balance sheet?     $20,000 $40,000 $60,000 $80,000 ACCT 405 Week 3 Quiz Latest Question 1 (TCO 2) Which of the following internal record-keeping methods can a parent choose to account for a subsidiary acquired in a business combination?      Initial value or book value Initial value, lower of cost or market value, or equity Initial value, equity, or partial equity Initial value, equity, or book value Initial value, lower of cost or market value, or partial equity Question 2 (TCO 3) One company acquires another company in a combination that is accounted for as an acquisition. The acquiring company decides to apply the initial value method in accounting for the combination. Which is one reason the acquiring company might have made this decision?  It is the only method allowed by the SEC.

11.  It is relatively easy to apply. It is the only internal reporting method allowed by generally accepted accounting principles. Operating results on the parent’s financial records reflect consolidated totals. When the initial method is used, no worksheet entries are required in the consolidation process.   Question 3 (TCO 3) Which of the following accounts would not appear on the consolidated financial statements at the end of the first fiscal period of the combination?      Goodwill Equipment Investment in subsidiary Common stock Additional paid-in capital Question 4 (TCO 3) Parent Corp. bought 100% of Jack Inc. on January 1, 20×1, at a price in excess of the subsidiary’s fair value. On that date, Parent’s equipment (10-year life) had a book value of $360,000 but a fair value of $480,000. Jack had equipment (10-year life) with a book value of $240,000 and a fair value of $350,000. Parent used the partial equity method to record its investment in Jack. On December 31, 20×3, Parent had equipment with a book value of $250,000 and a fair value of $400,000. Jack had equipment with a book value of $170,000 and a fair value of $320,000. Which is the consolidated balance for the equipment account as of December 31, 20×3?      $710,000 $580,000 $474,000 $497,000 $565,000 Question 5 (TCO 3) On September 1, 20×1, Peter Inc. issued common stock in exchange for 20% of Sal Inc.’s outstanding common stock. In July of 20×3, Peter issued common stock for an additional 75% of Sal’s outstanding common stock. Sal continues in existence as Peter’s subsidiary. How much of Sal’s 20×3 net income should be reported as accruing to Peter?     20% of Sal’s net income to June 30 and all of Sal’s net income from July 1 to December 31 20% of Sal’s net income to June 30 and 95% of Sal’s net income from July 1 to December 31 95% of Sal’s net income All of Sal’s net income

12. 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) 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

13.  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 ACCT 405 Week 6 Quiz Latest Question 1 (TCO 4) A U.S. company sells merchandise to a foreign company, denominated in U.S. dollars. Which of the following statements is true?      If the foreign currency appreciates, a foreign exchange gain will result. If the foreign currency depreciates, a foreign exchange gain will result. No foreign exchange gain or loss will result. If the foreign currency appreciates, a foreign exchange loss will result. If the foreign currency depreciates, a foreign exchange loss will result. Question 2 (TCO 4) Which of the following translation methods was originally mandated by SFAS No. 8?      Current/noncurrent method Monetary/nonmonetary method Current rate method Temporal method Indirect method Question 3 (TCO 4) Which is a company’s functional currency?

14.      The currency of the primary economic environment in which it operates The currency of the country where it has its headquarters The currency in which it prepares its financial statements The reporting currency of its parent for a subsidiary The currency it chooses to designate as such Question 4 (TCO 4) According to SFAS 52, which method is usually required for translating a foreign subsidiary’s financial statements into the parent’s reporting currency?      The temporal method The current rate method The current/noncurrent method The monetary/nonmonetary method The noncurrent rate method Question 5 (TCO 4) Freddy Co., a U.S. company, contracted to purchase foreign goods. Payment in foreign currency was due 1 month after the goods were received at Freddy’s warehouse. Between the receipt of goods and the time of payment, the exchange rates changed in Freddy’s favor. The resulting gain should be included in Freddy’s financial statements as a(n)     component of income from continuing operations. extraordinary item. deferred credit. separate component of other comprehensive income. ACCT 405 Week 7 Quiz Latest Question 1 (TCO 5) The disadvantages of the partnership form of business organization, compared to corporations, include      the legal requirements for formation. unlimited liability for the partners. the requirement for the partnership to pay income taxes. the extent of governmental regulation. the complexity of operations. Question 2 (TCO 2) Which of the following is not a characteristic of a partnership?  The partnership itself pays no income taxes.

15.     It is easy to form a partnership. Any partner can be held personally liable for all debts of the business. A partnership requires written articles of partnership. Each partner has the power to obligate the partnership for liabilities. Question 3 (TCO 5) The partnership of Charley, Sammy, and Tommy was insolvent and will be unable to pay $30,000 in liabilities currently due. Which recourse was available to the partnership’s creditors?      They must present equal claims to the three partners as individuals. They must try obtaining a payment from the partner with the largest capital account balance. They cannot seek remuneration from the partners as individuals. They may seek remuneration from any partner they choose. They must present their claims to the three partners in the order of the partners’ capital account balances. Question 4 (TCO 5) The partnership contract for Hal and Jan LLP provides that Hal is to receive a bonus of 20% of net income and that the remaining net income is to be divided equally. If the partnership income before the bonus for the year is $57,600, Hal’s share of this prebonus income is      $28,800. $33,600. $34,560. $43,200. $57,600. Question 5 (TCO 5) Roger and Wolger formed a partnership in the Year 20×1. The partnership agreement provides for annual salary allowances of $55,000 for Roger and $45,000 for Wolger. The partners share profits equally and losses in a 60/40 ratio. The partnership had earnings of $80,000 for Year 20×2 before any allowance to partners. Which amount of these earnings should be credited to each partner’s capital account?     Roger Wolger $40,000 $40,000 Roger Wolger $43,000 $37,000 Roger Wolger $44,000 $36,000 Roger Wolger $45,000 $35,000 Download Now