Question 1

What is the dollar amount of fair value over book value differences attributed to Perch at the date of acquisition?

Accepted Answer

A)  $120,000. 
B)  $150,000. 
C)  $280,000. 
D)  $350,000. 
E)  $370,000. 
A)  $120,000. 
B)  $150,000. 
C)  $280,000. 
D)  $350,000. 
E)  $370,000.

Question 2

The following account balances are for the year ending December 31, 2020 for both companies.
   Required:
Prepare a consolidation worksheet for this business combination.Assume goodwill has been reviewed and there is no goodwill impairment.

Accepted Answer

Consolidation Worksheet for Jo

Question 3

Prepare a proper presentation of consolidated net income and its allocation for 2020.

Accepted Answer

The answer of Prepare a proper presentation of consolidated net...

Question 4

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

Accepted Answer

A)  $2,000 increase. 
B)  $2,000 decrease. 
C)  $1,800 increase. 
D)  $1,800 decrease. 
E)  No adjustment is necessary. 
A)  $2,000 increase. 
B)  $2,000 decrease. 
C)  $1,800 increase. 
D)  $1,800 decrease. 
E)  No adjustment is necessary.

Question 5

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

Accepted Answer

A)  $625,000. 
B)  $664,800. 
C)  $592,400. 
D)  $500,000. 
E)  $572,000. 
A)  $625,000. 
B)  $664,800. 
C)  $592,400. 
D)  $500,000. 
E)  $572,000.

Question 6

What are the total consolidated current liabilities at January 2, 2019?

Accepted Answer

A)  $53,200. 
B)  $56,000. 
C)  $64,400. 
D)  $42,000. 
E)  $70,000. 
A)  $53,200. 
B)  $56,000. 
C)  $64,400. 
D)  $42,000. 
E)  $70,000.

Question 7

What is the total amount of excess land allocation at the acquisition date?

Accepted Answer

A)  $ 0. 
B)  $30,000. 
C)  $22,500. 
D)  $25,000. 
E)  $17,500. 
A)  $ 0. 
B)  $30,000. 
C)  $22,500. 
D)  $25,000. 
E)  $17,500.

Question 8

What is pre-acquisition income?

Accepted Answer

When a company acquires control of a sub

Question 9

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

Accepted Answer

A)  $1,440 increase. 
B)  $1,440 decrease. 
C)  $1,600 increase. 
D)  $1,600 decrease. 
E)  No adjustment is necessary. 
A)  $1,440 increase. 
B)  $1,440 decrease. 
C)  $1,600 increase. 
D)  $1,600 decrease. 
E)  No adjustment is necessary.

Question 10

Compute the noncontrolling interest in Demers at December 31, 2020.

Accepted Answer

A)  $124,000. 
B)  $126,000. 
C)  $109,200. 
D)  $149,600. 
E)  $ 148,200. 
A)  $124,000. 
B)  $126,000. 
C)  $109,200. 
D)  $149,600. 
E)  $ 148,200.

Question 11

In comparing U.S.GAAP and International Financial Reporting Standards (IFRS) with regard to a basis for measurement of a noncontrolling interest, which of the following is true?

Accepted Answer

A)  U.S. GAAP requires acquisition-date fair value measurement and IFRS requires the acquiree's identifiable net asset fair value measurement. 
B)  U.S. GAAP and IFRS both require acquisition-date fair value measurement. 
C)  U.S. GAAP and IFRS both require the acquiree's identifiable net asset fair value measurement. 
D)  U.S. GAAP requires acquisition-date fair value measurement, but IFRS allows an option for acquisition-date fair value measurement. 
E)  U.S. GAAP and IFRS both apportion goodwill to the parent only. 
A)  U.S. GAAP requires acquisition-date fair value measurement and IFRS requires the acquiree's identifiable net asset fair value measurement. 
B)  U.S. GAAP and IFRS both require acquisition-date fair value measurement. 
C)  U.S. GAAP and IFRS both require the acquiree's identifiable net asset fair value measurement. 
D)  U.S. GAAP requires acquisition-date fair value measurement, but IFRS allows an option for acquisition-date fair value measurement. 
E)  U.S. GAAP and IFRS both apportion goodwill to the parent only.

Question 12

What is the effect of including Kailey in consolidated net income for 2019?

Accepted Answer

A)  $31,000. 
B)  $33,000. 
C)  $55,000. 
D)  $60,000. 
E)  $39,000. 
A)  $31,000. 
B)  $33,000. 
C)  $55,000. 
D)  $60,000. 
E)  $39,000.

Question 13

What amount of goodwill should be attributed to Perch at the date of acquisition?

Accepted Answer

A)  $150,000. 
B)  $250,000. 
C)  $ 0. 
D)  $120,000. 
E)  $170,000. 
A)  $150,000. 
B)  $250,000. 
C)  $ 0. 
D)  $120,000. 
E)  $170,000.

Question 14

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 15

Compute Pell's investment account balance in Demers at December 31, 2021.

Accepted Answer

A)  $639,000. 
B)  $643,200. 
C)  $763,200. 
D)  $676,000. 
E)  $620,000. 
A)  $639,000. 
B)  $643,200. 
C)  $763,200. 
D)  $676,000. 
E)  $620,000.

Question 16

In consolidation at December 31, 2019, what adjustment is necessary for Hogan's Equipment account?

Accepted Answer

A)  $3,000 increase. 
B)  $3,000 decrease. 
C)  $2,700 increase. 
D)  $2,700 decrease. 
E)  No adjustment is necessary. 
A)  $3,000 increase. 
B)  $3,000 decrease. 
C)  $2,700 increase. 
D)  $2,700 decrease. 
E)  No adjustment is necessary.

Question 17

Determine the amount of the noncontrolling interest as of the date of the acquisition.

Accepted Answer

Implied value of Club Corp. ($

Question 18

Compute the noncontrolling interest in the net income of Demers at December 31, 2020.

Accepted Answer

A)  $18,400. 
B)  $14,400. 
C)  $22,600. 
D)  $24,000. 
E)  $12,600. 
A)  $18,400. 
B)  $14,400. 
C)  $22,600. 
D)  $24,000. 
E)  $12,600.

Question 19

Compute the noncontrolling interest in the net income of Demers at December 31, 2020.

Accepted Answer

A)  $18,400. 
B)  $14,000. 
C)  $22,600. 
D)  $24,000. 
E)  $12,600. 
A)  $18,400. 
B)  $14,000. 
C)  $22,600. 
D)  $24,000. 
E)  $12,600.

Question 20

Compute Pell's income from Demers for the year ended December 31, 2020.

Accepted Answer

A)  $90,400. 
B)  $89,000. 
C)  $50,400. 
D)  $56,000. 
E)  $96,000. 
A)  $90,400. 
B)  $89,000. 
C)  $50,400. 
D)  $56,000. 
E)  $96,000.

Exam 4: Consolidated Financial Statements and Outside Ownership

What is the dollar amount of fair value over book value differences attributed to Perch at the date of acquisition?

The following account balances are for the year ending December 31, 2020 for both companies. Required: Prepare a consolidation worksheet for this business combination.Assume goodwill has been reviewed and there is no goodwill impairment.

Prepare a proper presentation of consolidated net income and its allocation for 2020.

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

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

What are the total consolidated current liabilities at January 2, 2019?

What is the total amount of excess land allocation at the acquisition date?

What is pre-acquisition income?

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

Compute the noncontrolling interest in Demers at December 31, 2020.

In comparing U.S.GAAP and International Financial Reporting Standards (IFRS) with regard to a basis for measurement of a noncontrolling interest, which of the following is true?

What is the effect of including Kailey in consolidated net income for 2019?

What amount of goodwill should be attributed to Perch at the date of acquisition?

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

Compute Pell's investment account balance in Demers at December 31, 2021.

In consolidation at December 31, 2019, what adjustment is necessary for Hogan's Equipment account?

Determine the amount of the noncontrolling interest as of the date of the acquisition.

Compute the noncontrolling interest in the net income of Demers at December 31, 2020.

Compute the noncontrolling interest in the net income of Demers at December 31, 2020.

Compute Pell's income from Demers for the year ended 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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