Question 1

What is the amount of Kailey's net income to the controlling interest 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 2

All of the following statements regarding the sale of subsidiary shares are true except which of the following?

Accepted Answer

A)  The use of specific identification based on serial number is acceptable. 
B)  The use of the FIFO assumption is acceptable. 
C)  The use of the averaging assumption is acceptable. 
D)  The use of specific LIFO assumption is acceptable. 
E)  The parent company must determine whether consolidation is still appropriate for the remaining shares owned. 
A)  The use of specific identification based on serial number is acceptable. 
B)  The use of the FIFO assumption is acceptable. 
C)  The use of the averaging assumption is acceptable. 
D)  The use of specific LIFO assumption is acceptable. 
E)  The parent company must determine whether consolidation is still appropriate for the remaining shares owned.

Question 3

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

Accepted Answer

A)  $126,000. 
B)  $106,000. 
C)  $109,200. 
D)  $149,600. 
E)  $148,200. 
A)  $126,000. 
B)  $106,000. 
C)  $109,200. 
D)  $149,600. 
E)  $148,200.

Question 4

How much does Pell record as Income from Demers for the year ended December 31, 2020?

Accepted Answer

A)  $90,400. 
B)  $40,000. 
C)  $89,000. 
D)  $50,400. 
E)  $56,000. 
A)  $90,400. 
B)  $40,000. 
C)  $89,000. 
D)  $50,400. 
E)  $56,000.

Question 5

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 6

What is the noncontrolling interest balance as of December 31, 2020?

Accepted Answer

SHAPE \* M

Question 7

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 8

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

Accepted Answer

A)  $8,000 decrease . 
B)  $7,000 increase. 
C)  $6,300 increase. 
D)  $6,300 decrease. 
E)  No adjustment is necessary. 
A)  $8,000 decrease . 
B)  $7,000 increase. 
C)  $6,300 increase. 
D)  $6,300 decrease. 
E)  No adjustment is necessary.

Question 9

Which of the following statements is true regarding the sale of subsidiary shares when using the acquisition method for accounting for business combinations?

Accepted Answer

A)  If control continues, the difference between selling price and acquisition value is recorded as a realized gain or loss. 
B)  If control continues, the difference between selling price and acquisition value is an unrealized gain or loss. 
C)  If control continues, the difference between selling price and carrying value is recorded as an adjustment to additional paid-in capital. 
D)  If control continues, the difference between selling price and carrying value is recorded as a realized gain or loss. 
E)  If control continues, the difference between selling price and carrying value is recorded as an adjustment to retained earnings. 
A)  If control continues, the difference between selling price and acquisition value is recorded as a realized gain or loss. 
B)  If control continues, the difference between selling price and acquisition value is an unrealized gain or loss. 
C)  If control continues, the difference between selling price and carrying value is recorded as an adjustment to additional paid-in capital. 
D)  If control continues, the difference between selling price and carrying value is recorded as a realized gain or loss. 
E)  If control continues, the difference between selling price and carrying value is recorded as an adjustment to retained earnings.

Question 10

Where should a noncontrolling interest appear on a consolidated balance sheet?

Accepted Answer

The noncontrolling interest sh

Question 11

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

Accepted Answer

A)  $5,600. 
B)  $8,800. 
C)  $7,000. 
D)  $7,700. 
E)  No adjustment is necessary. 
A)  $5,600. 
B)  $8,800. 
C)  $7,000. 
D)  $7,700. 
E)  No adjustment is necessary.

Question 12

Compute Pell's income from Demers for the year ended December 31, 2021.

Accepted Answer

A)  $50,400. 
B)  $56,000. 
C)  $98,400. 
D)  $97,000. 
E)  $104,000. 
A)  $50,400. 
B)  $56,000. 
C)  $98,400. 
D)  $97,000. 
E)  $104,000.

Question 13

When a subsidiary is acquired sometime after the first day of the fiscal year, which of the following statements is true?

Accepted Answer

A)  Income from subsidiary is not recognized until there is an entire year of consolidated operations. 
B)  Income from subsidiary is recognized from date of acquisition to year-end. 
C)  Excess cost over acquisition value is recognized at the beginning of the fiscal year. 
D)  No goodwill can be recognized. 
E)  Income from subsidiary is recognized for the entire year. 
A)  Income from subsidiary is not recognized until there is an entire year of consolidated operations. 
B)  Income from subsidiary is recognized from date of acquisition to year-end. 
C)  Excess cost over acquisition value is recognized at the beginning of the fiscal year. 
D)  No goodwill can be recognized. 
E)  Income from subsidiary is recognized for the entire year.

Question 14

Compute Pell's investment in Demers at December 31, 2019.

Accepted Answer

A)  $500,000. 
B)  $574,400. 
C)  $625,000. 
D)  $542,400. 
E)  $532,000. 
A)  $500,000. 
B)  $574,400. 
C)  $625,000. 
D)  $542,400. 
E)  $532,000.

Question 15

For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except:

Accepted Answer

A)  Identifiable assets acquired, at fair value. 
B)  Liabilities assumed, at book value. 
C)  Non-controlling interest, at fair value. 
D)  Goodwill, or a gain from bargain purchase. 
E)  None of these choices is correct. 
A)  Identifiable assets acquired, at fair value. 
B)  Liabilities assumed, at book value. 
C)  Non-controlling interest, at fair value. 
D)  Goodwill, or a gain from bargain purchase. 
E)  None of these choices is correct.

Question 16

When a parent uses the partial equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of the following statements is true at the date immediately preceding the date on which adjustments are made on the consolidated worksheet?

Accepted Answer

A)  Parent company net income equals consolidated net income. 
B)  Parent company retained earnings equals consolidated retained earnings. 
C)  Parent company total assets equals consolidated total assets. 
D)  Parent company dividends equal consolidated dividends. 
E)  Goodwill is recorded on the parent's books. 
A)  Parent company net income equals consolidated net income. 
B)  Parent company retained earnings equals consolidated retained earnings. 
C)  Parent company total assets equals consolidated total assets. 
D)  Parent company dividends equal consolidated dividends. 
E)  Goodwill is recorded on the parent's books.

Question 17

What amount represents consolidated current assets at January 2, 2019?

Accepted Answer

A)  $127,000. 
B)  $129,800. 
C)  $143,800. 
D)  $148,000. 
E)  $135,400. 
A)  $127,000. 
B)  $129,800. 
C)  $143,800. 
D)  $148,000. 
E)  $135,400.

Question 18

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 19

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

Accepted Answer

A)  $676,000. 
B)  $629,000. 
C)  $580,000. 
D)  $604,000. 
E)  $572,000. 
A)  $676,000. 
B)  $629,000. 
C)  $580,000. 
D)  $604,000. 
E)  $572,000.

Question 20

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

Accepted Answer

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

Exam 4: A: Consolidated Financial Statements and Outside Ownership

What is the amount of Kailey's net income to the controlling interest for 2019?

All of the following statements regarding the sale of subsidiary shares are true except which of the following?

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

How much does Pell record as Income from Demers for the year ended December 31, 2020?

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

What is the noncontrolling interest balance as of December 31, 2020?

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

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

Which of the following statements is true regarding the sale of subsidiary shares when using the acquisition method for accounting for business combinations?

Where should a noncontrolling interest appear on a consolidated balance sheet?

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

Compute Pell's income from Demers for the year ended December 31, 2021.

When a subsidiary is acquired sometime after the first day of the fiscal year, which of the following statements is true?

Compute Pell's investment in Demers at December 31, 2019.

For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except:

When a parent uses the partial equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of the following statements is true at the date immediately preceding the date on which adjustments are made on the consolidated worksheet?

What amount represents consolidated current assets at January 2, 2019?

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.

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

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

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

Filters