Question 1

Compute consolidated expenses immediately following the acquisition.

Accepted Answer

A)  $2,735. 
B)  $2,760. 
C)  $2,770. 
D)  $2,785. 
E)  $3,380. 
A)  $2,735. 
B)  $2,760. 
C)  $2,770. 
D)  $2,785. 
E)  $3,380. C

Question 2

Lisa Co.paid cash for all of the voting common stock of Victoria Corp.Victoria will continue to exist as a separate corporation.Entries for the consolidation of Lisa and Victoria would be recorded in

Accepted Answer

A)  A worksheet. 
B)  Lisa's general journal. 
C)  Victoria's general journal. 
D)  Victoria's secret consolidation journal. 
E)  The general journals of both companies. 
A)  A worksheet. 
B)  Lisa's general journal. 
C)  Victoria's general journal. 
D)  Victoria's secret consolidation journal. 
E)  The general journals of both companies. A

Question 3

Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be reported for consolidated retained earnings?

Accepted Answer

A)  $1,830,000. 
B)  $1,350,000. 
C)  $1,080,000. 
D)  $1,560,000. 
E)  $1,535,000. 
A)  $1,830,000. 
B)  $1,350,000. 
C)  $1,080,000. 
D)  $1,560,000. 
E)  $1,535,000. C

Question 4

The following are preliminary financial statements for Green Co.and Gold Co.for the year ending December 31, 2018 prior to Black's acquisition of Blue.
   On December 31, 2018 (subsequent to the preceding statements), Green exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Gold.Green's stock on that date has a fair value of $60 per share.Green was willing to issue 10,000 shares of stock because Gold's land was appraised at $204,000.Green also paid $14,000 to attorneys and accountants who assisted in creating this combination.
Required:
Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2018 after the acquisition transaction is completed.

Accepted Answer

(1) I; (2)

Question 5

In an acquisition where 100% control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated financial statements?

Accepted Answer

The answer of In an acquisition where 100% control is...

Question 6

Prepare the journal entries to record: (1) the issuance of stock by Jode; and (2) the payment of the combination costs.

Accepted Answer

Entry One - To record the issu

Question 7

Compute the consolidated cash account at December 31, 2018.

Accepted Answer

A)  $460. 
B)  $425. 
C)  $400. 
D)  $435. 
E)  $240. 
A)  $460. 
B)  $425. 
C)  $400. 
D)  $435. 
E)  $240.

Question 8

Compute the amount of consolidated inventories at date of acquisition.

Accepted Answer

A)  $1,080. 
B)  $1,350. 
C)  $1,360. 
D)  $1,370. 
E)  $ 290. 
A)  $1,080. 
B)  $1,350. 
C)  $1,360. 
D)  $1,370. 
E)  $ 290.

Question 9

The following are preliminary financial statements for Black Co.and Blue Co.for the year ending December 31, 2018, prior to Black's acquisition of Blue Co.
   On December 31, 2018 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue.Black's stock on that date has a fair value of $50 per share.Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000.Black also paid $14,000 to attorneys and accountants who assisted in creating this combination.
Required:
Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2018.

Accepted Answer

Bargain Purchase Acq

Question 10

Compute the amount of consolidated equipment at date of acquisition.

Accepted Answer

A)  $480. 
B)  $580. 
C)  $559. 
D)  $570. 
E)  $560. 
A)  $480. 
B)  $580. 
C)  $559. 
D)  $570. 
E)  $560.

Question 11

Compute the consolidated revenues for 2018.

Accepted Answer

A)  $2,700. 
B)  $ 720. 
C)  $ 920. 
D)  $3,300. 
E)  $1,540. 
A)  $2,700. 
B)  $ 720. 
C)  $ 920. 
D)  $3,300. 
E)  $1,540.

Question 12

Compute consolidated goodwill at the date of the acquisition.

Accepted Answer

A)  $360. 
B)  $450. 
C)  $460. 
D)  $440. 
E)  $475. 
A)  $360. 
B)  $450. 
C)  $460. 
D)  $440. 
E)  $475.

Question 13

What amount will be reported for goodwill as a result of this acquisition?

Accepted Answer

A)  $ 30,000. 
B)  $ 55,000. 
C)  $ 65,000. 
D)  $175,000. 
E)  $ 200,000. 
A)  $ 30,000. 
B)  $ 55,000. 
C)  $ 65,000. 
D)  $175,000. 
E)  $ 200,000.

Question 14

Compute the consolidated common stock account at December 31, 2018.

Accepted Answer

A)  $1,080. 
B)  $1,480. 
C)  $1,380. 
D)  $2,280. 
E)  $2,680. 
A)  $1,080. 
B)  $1,480. 
C)  $1,380. 
D)  $2,280. 
E)  $2,680.

Question 15

Compute the consolidated equipment (net) account at December 31, 2018.

Accepted Answer

A)  $2,100. 
B)  $3,500. 
C)  $3,300. 
D)  $3,000. 
E)  $3,200. 
A)  $2,100. 
B)  $3,500. 
C)  $3,300. 
D)  $3,000. 
E)  $3,200.

Question 16

Compute the goodwill arising from this acquisition at December 31, 2018.

Accepted Answer

A)  $ 0. 
B)  $100. 
C)  $125. 
D)  $160. 
E)  $ 45. 
A)  $ 0. 
B)  $100. 
C)  $125. 
D)  $160. 
E)  $ 45.

Question 17

What is the primary difference between recording an acquisition when the subsidiary is dissolved and when separate incorporation is maintained?

Accepted Answer

When the subsidiary is dissolved, the ac

Question 18

How is contingent consideration accounted for in an acquisition business combination transaction?

Accepted Answer

The fair value approach of the acquisiti

Question 19

Assume that Botkins acquired Volkerson on January 1, 2017.Immediately afterwards, what is the value of the consolidated Common Stock?

Accepted Answer

A)  $456,000. 
B)  $402,000. 
C)  $274,000. 
D)  $276,000. 
E)  $330,000. 
A)  $456,000. 
B)  $402,000. 
C)  $274,000. 
D)  $276,000. 
E)  $330,000.

Question 20

Compute the consideration transferred for this acquisition at December 31, 2018.

Accepted Answer

A)  $ 900. 
B)  $1,165. 
C)  $1,200. 
D)  $1,765. 
E)  $1,800. 
A)  $ 900. 
B)  $1,165. 
C)  $1,200. 
D)  $1,765. 
E)  $1,800.

Exam 2: Consolidation of Financial Information

Compute consolidated expenses immediately following the acquisition.

Lisa Co.paid cash for all of the voting common stock of Victoria Corp.Victoria will continue to exist as a separate corporation.Entries for the consolidation of Lisa and Victoria would be recorded in

Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be reported for consolidated retained earnings?

In an acquisition where 100% control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated financial statements?

Prepare the journal entries to record: (1) the issuance of stock by Jode; and (2) the payment of the combination costs.

Compute the consolidated cash account at December 31, 2018.

Compute the amount of consolidated inventories at date of acquisition.

Compute the amount of consolidated equipment at date of acquisition.

Compute the consolidated revenues for 2018.

Compute consolidated goodwill at the date of the acquisition.

What amount will be reported for goodwill as a result of this acquisition?

Compute the consolidated common stock account at December 31, 2018.

Compute the consolidated equipment (net) account at December 31, 2018.

Compute the goodwill arising from this acquisition at December 31, 2018.

What is the primary difference between recording an acquisition when the subsidiary is dissolved and when separate incorporation is maintained?

How is contingent consideration accounted for in an acquisition business combination transaction?

Assume that Botkins acquired Volkerson on January 1, 2017.Immediately afterwards, what is the value of the consolidated Common Stock?

Compute the consideration transferred for this acquisition at December 31, 2018.

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

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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