Question 1

What amount of consolidated net income for 2020 is attributable to Royce's controlling interest?

Accepted Answer

A)  $686,000. 
B)  $560,000. 
C)  $644,000. 
D)  $635,600. 
E)  $691,600. 
A)  $686,000. 
B)  $560,000. 
C)  $644,000. 
D)  $635,600. 
E)  $691,600.

Question 2

Compute the noncontrolling interest in the net income of Demers at December 31, 2019.

Accepted Answer

A)  $12,000. 
B)  $10,600. 
C)  $18,600. 
D)  $20,000. 
E)  $14,400. 
A)  $12,000. 
B)  $10,600. 
C)  $18,600. 
D)  $20,000. 
E)  $14,400.

Question 3

On January 1, 2018, Vacker Co.acquired 70% of Carper Inc.by paying $650,000.This included a $20,000 control premium.Carper reported common stock on that date of $420,000 with retained earnings of $252,000.A building was undervalued in the company's financial records by $28,000.This building had a ten-year remaining life.Copyrights of $80,000 were to be recognized and amortized over 20 years.
Carper earned income and paid cash dividends as follows:
On December 31, 2020, Vacker owed $30,800 to Carper.There have been no changes in Carper's common stock account since the acquisition.
   Required:
If the equity method had been applied by Vacker for this acquisition, what were the consolidation entries needed as of December 31, 2020?

Accepted Answer

From the acquisition value, $28,000 was

Question 4

How much does Pell record as Income from Demers for the year ended December 31, 2019?

Accepted Answer

A)  $80,000. 
B)  $74,400. 
C)  $73,000. 
D)  $42,400. 
E)  $41,000. 
A)  $80,000. 
B)  $74,400. 
C)  $73,000. 
D)  $42,400. 
E)  $41,000.

Question 5

In consolidation at December 31, 2020, what adjustment is necessary for Hogan's Land account?

Accepted Answer

A)  $7,000 decrease. 
B)  $7,000 increase. 
C)  $6,300 increase. 
D)  $6,300 decrease. 
E)  No adjustment is necessary. 
A)  $7,000 decrease. 
B)  $7,000 increase. 
C)  $6,300 increase. 
D)  $6,300 decrease. 
E)  No adjustment is necessary.

Question 6

Compute the noncontrolling interest in Demers at December 31, 2019.

Accepted Answer

A)  $135,600. 
B)  $ 80,000. 
C)  $117,000. 
D)  $100,000. 
E)  $110,600. 
A)  $135,600. 
B)  $ 80,000. 
C)  $117,000. 
D)  $100,000. 
E)  $110,600.

Question 7

Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2019, and an additional 10% on January 1, 2020.Total annual amortization of $6,000 relates to the first acquisition.George reports the following figures for 2020:   Without regard for this investment, Keefe independently earns $300,000 in net income during 2020.
All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2020?

Accepted Answer

A)  $380,000. 
B)  $375,200. 
C)  $375,800. 
D)  $376,000. 
E)  $400,000. 
A)  $380,000. 
B)  $375,200. 
C)  $375,800. 
D)  $376,000. 
E)  $400,000.

Question 8

How much does Pell record as Income from Demers for the year ended December 31, 2019?

Accepted Answer

A)  $32,000. 
B)  $74,400. 
C)  $73,000. 
D)  $42,400. 
E)  $41,000. 
A)  $32,000. 
B)  $74,400. 
C)  $73,000. 
D)  $42,400. 
E)  $41,000.

Question 9

Compute the noncontrolling interest in the net income of Demers at December 31, 2019.

Accepted Answer

A)  $20,000. 
B)  $12,000. 
C)  $18,600. 
D)  $10,600. 
E)  $14,400. 
A)  $20,000. 
B)  $12,000. 
C)  $18,600. 
D)  $10,600. 
E)  $14,400.

Question 10

What amount of consolidated net income for 2019 should be allocated to Femur's controlling interest in Harbor?

Accepted Answer

A)  $ 582,000 
B)  $1,050,000 
C)  $1,358,000 
D)  $1,808,000 
E)  $2,140,000 
A)  $ 582,000 
B)  $1,050,000 
C)  $1,358,000 
D)  $1,808,000 
E)  $2,140,000

Question 11

What is the noncontrolling interest's share of the subsidiary's net income for the year ended December 31, 2020 and what is the ending balance of the noncontrolling interest in the subsidiary at December 31, 2020?

Accepted Answer

A)  $56,000 and $280,000. 
B)  $50,400 and $218,400. 
C)  $56,000 and $224,000. 
D)  $56,000 and $336,000. 
E)  $50,400 and $330,400. 
A)  $56,000 and $280,000. 
B)  $50,400 and $218,400. 
C)  $56,000 and $224,000. 
D)  $56,000 and $336,000. 
E)  $50,400 and $330,400.

Question 12

Compute the noncontrolling interest in the net income of Demers at December 31, 2021.

Accepted Answer

A)  $24,600. 
B)  $14,000. 
C)  $26,000. 
D)  $20,400. 
E)  $12,600. 
A)  $24,600. 
B)  $14,000. 
C)  $26,000. 
D)  $20,400. 
E)  $12,600.

Question 13

Tosco Co.paid $540,000 for 80% of the stock of Martz Co.when the book value of Martz's net assets was $600,000.For all of Martz's assets and liabilities, book value and fair value were approximately equal.There was no active market for the shares of Martz Co.
Required:
Using the acquisition method, what amount of goodwill should appear in a consolidated balance sheet prepared immediately after the combination?

Accepted Answer

The answer of Tosco Co.paid $540,000 for 80% of the...

Question 14

Jax Company used the acquisition method when it acquired its investment in Saxton Company.Jax now sells some of its shares of Saxton such that neither control nor significant influence exists.Which of the following statements is true?

Accepted Answer

A)  The difference between selling price and acquisition value is recorded as a realized gain or loss. 
B)  The difference between selling price and acquisition value is recorded as an unrealized gain or loss. 
C)  The difference between selling price and carrying value is recorded as a realized gain or loss. 
D)  The difference between selling price and carrying value is recorded as an unrealized gain or loss. 
E)  The difference between selling price and carrying value is recorded as an adjustment to retained earnings. 
A)  The difference between selling price and acquisition value is recorded as a realized gain or loss. 
B)  The difference between selling price and acquisition value is recorded as an unrealized gain or loss. 
C)  The difference between selling price and carrying value is recorded as a realized gain or loss. 
D)  The difference between selling price and carrying value is recorded as an unrealized gain or loss. 
E)  The difference between selling price and carrying value is recorded as an adjustment to retained earnings.

Question 15

What amount would Femur Co.report as consolidated net income for 2019?

Accepted Answer

A)  $440,000. 
B)  $500,000. 
C)  $1,500,000. 
D)  $1,940,000. 
E)  $2,000,000. 
A)  $440,000. 
B)  $500,000. 
C)  $1,500,000. 
D)  $1,940,000. 
E)  $2,000,000.

Question 16

What is the amount of the noncontrolling interest's share of Kailey's income for 2019?

Accepted Answer

A)  $22,000. 
B)  $24,000. 
C)  $48,000. 
D)  $66,000. 
E)  $72,000. 
A)  $22,000. 
B)  $24,000. 
C)  $48,000. 
D)  $66,000. 
E)  $72,000.

Question 17

At what amount would consolidated goodwill be reported for 2020?

Accepted Answer

A)  $150,000 
B)  $200,000. 
C)  $ 50,000. 
D)  $ 0. 
E)  $135,000. 
A)  $150,000 
B)  $200,000. 
C)  $ 50,000. 
D)  $ 0. 
E)  $135,000.

Question 18

The acquisition value attributable to the noncontrolling interest at January 1, 2019 is:

Accepted Answer

A)  $23,400. 
B)  $24,000. 
C)  $24,900. 
D)  $26,000. 
E)  $20,000. 
A)  $23,400. 
B)  $24,000. 
C)  $24,900. 
D)  $26,000. 
E)  $20,000.

Question 19

How much does Pell record as Income from Demers for the year ended December 31, 2021?

Accepted Answer

A)  $48,000. 
B)  $56,000. 
C)  $98,400. 
D)  $97,000. 
E)  $50,400. 
A)  $48,000. 
B)  $56,000. 
C)  $98,400. 
D)  $97,000. 
E)  $50,400.

Question 20

Compute Pell's investment account balance in Demers at December 31, 2020.

Accepted Answer

A)  $577,200. 
B)  $604,000. 
C)  $592,800. 
D)  $632,800. 
E)  $572,000. 
A)  $577,200. 
B)  $604,000. 
C)  $592,800. 
D)  $632,800. 
E)  $572,000.

Exam 4: Consolidated Financial Statements and Outside Ownership

What amount of consolidated net income for 2020 is attributable to Royce's controlling interest?

Compute the noncontrolling interest in the net income of Demers at December 31, 2019.

How much does Pell record as Income from Demers for the year ended December 31, 2019?

In consolidation at December 31, 2020, what adjustment is necessary for Hogan's Land account?

Compute the noncontrolling interest in Demers at December 31, 2019.

How much does Pell record as Income from Demers for the year ended December 31, 2019?

Compute the noncontrolling interest in the net income of Demers at December 31, 2019.

What amount of consolidated net income for 2019 should be allocated to Femur's controlling interest in Harbor?

What is the noncontrolling interest's share of the subsidiary's net income for the year ended December 31, 2020 and what is the ending balance of the noncontrolling interest in the subsidiary at December 31, 2020?

Compute the noncontrolling interest in the net income of Demers at December 31, 2021.

Jax Company used the acquisition method when it acquired its investment in Saxton Company.Jax now sells some of its shares of Saxton such that neither control nor significant influence exists.Which of the following statements is true?

What amount would Femur Co.report as consolidated net income for 2019?

What is the amount of the noncontrolling interest's share of Kailey's income for 2019?

At what amount would consolidated goodwill be reported for 2020?

The acquisition value attributable to the noncontrolling interest at January 1, 2019 is:

How much does Pell record as Income from Demers for the year ended December 31, 2021?

Compute Pell's investment account balance in Demers at December 31, 2020.

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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