Question 1

In consolidation,the total amount of expenses related to Kailey and to Denber's acquisition of Kailey for 2009 is determined to be

Accepted Answer

A) $206,667 
B) $211,667 
C) $221,667 
D) $620,000 
E) $635,000 
A) $206,667 
B) $211,667 
C) $221,667 
D) $620,000 
E) $635,000

Question 2

When a parent uses the acquisition method for business combinations and sells shares of its subsidiary,which of the following statements is false?

Accepted Answer

A) If majority control is still maintained,consolidated financial statements are still required 
B) If majority control is not maintained but significant influence exists,the equity method to account for the investment is still used but consolidated financial statements are not required 
C) If majority control is not maintained but significant influence exists,the equity method is still used to account for the investment and consolidated financial statements are still required 
D) If majority control is not maintained and significant influence no longer exists,a prospective change in accounting principle to the fair value method is required 
E) A gain or loss calculation must be prepared if control is lost 
A) If majority control is still maintained,consolidated financial statements are still required 
B) If majority control is not maintained but significant influence exists,the equity method to account for the investment is still used but consolidated financial statements are not required 
C) If majority control is not maintained but significant influence exists,the equity method is still used to account for the investment and consolidated financial statements are still required 
D) If majority control is not maintained and significant influence no longer exists,a prospective change in accounting principle to the fair value method is required 
E) A gain or loss calculation must be prepared if control is lost

Question 3

What is consolidated current assets as of January 2,2009?

Accepted Answer

A) $138,600 
B) $134,400 
C) $126,000 
D) $140,000 
E) $127,400 
A) $138,600 
B) $134,400 
C) $126,000 
D) $140,000 
E) $127,400

Question 4

What is the consolidated balance of the Equipment account?

Accepted Answer

A) $666,400 
B) $604,000 
C) $756,000 
D) $711,200 
E) $764,000 
A) $666,400 
B) $604,000 
C) $756,000 
D) $711,200 
E) $764,000

Question 5

What amount should have been reported for the land on a consolidated balance sheet,according to SFAS 141(R),using the acquisition method?

Accepted Answer

A) $70,000 
B) $75,000 
C) $85,000 
D) $92,500 
E) $100,000 
A) $70,000 
B) $75,000 
C) $85,000 
D) $92,500 
E) $100,000

Question 6

Keefe,Inc. ,a calendar-year corporation,acquires 70% of George Company on September 1,2009 and an additional 10% on April 1,2010.Total annual amortization of $6,000 relates to the first acquisition.George reports the following figures for 2010:  
Without regard for this investment,Keefe earns $300,000 in net income during 2010.
All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2010?

Accepted Answer

A) $373,300 
B) $372,850 
C) $371,500 
D) $376,000 
E) $372,805 
A) $373,300 
B) $372,850 
C) $371,500 
D) $376,000 
E) $372,805

Question 7

In consolidation at January 1,2009,what adjustment is necessary for Hogan's Patent account?

Accepted Answer

A) $7,000 
B) $6,300 
C) $0 
D) $11,000 
E) $9,900 
A) $7,000 
B) $6,300 
C) $0 
D) $11,000 
E) $9,900

Question 8

What is the non-controlling interest's share of the subsidiary's net income and what is the ending balance of the non-controlling interest in the subsidiary?

Accepted Answer

A) $50,400 and $397,600 
B) $53,648 and $304,500 
C) $56,000 and $296,800 
D) $52,640 and $313,600 
E) $55,270 and $297,300 
A) $50,400 and $397,600 
B) $53,648 and $304,500 
C) $56,000 and $296,800 
D) $52,640 and $313,600 
E) $55,270 and $297,300

Question 9

In consolidation at December 31,2010,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 change 
A) $2,000 increase 
B) $2,000 decrease 
C) $1,800 increase 
D) $1,800 decrease 
E) No change

Question 10

What is the net effect of the inclusion of Harbor on consolidated net income for 2009?

Accepted Answer

A) $350,000 
B) $308,000 
C) $500,000 
D) $440,000 
E) $290,000 
A) $350,000 
B) $308,000 
C) $500,000 
D) $440,000 
E) $290,000

Question 11

When a parent uses the initial value method throughout the year to account for investment in a subsidiary,which of the following statements is true before making adjustments 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 equals consolidated dividends 
E) Goodwill is never recognized 
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 equals consolidated dividends 
E) Goodwill is never recognized

Question 12

In consolidation at December 31,2009,what adjustment is necessary for Hogan's Land account?

Accepted Answer

A) $0 
B) $7,000 increase 
C) $6,300 increase 
D) $6,300 decrease 
E) $8,000 decrease 
A) $0 
B) $7,000 increase 
C) $6,300 increase 
D) $6,300 decrease 
E) $8,000 decrease

Question 13

The non-controlling interest's share of the earnings of Harbor Corp.is calculated to be

Accepted Answer

A) $132,000 
B) $150,000 
C) $168,000 
D) $160,000 
E) $0 
A) $132,000 
B) $150,000 
C) $168,000 
D) $160,000 
E) $0

Question 14

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 15

In consolidation at December 31,2009,what net adjustment is necessary for Hogan's Patent account?

Accepted Answer

A) $5,600 
B) $8,800 
C) $0 
D) $7,700 
E) $7,000 
A) $5,600 
B) $8,800 
C) $0 
D) $7,700 
E) $7,000

Question 16

What amount of excess land allocation would be included for the calculation of non-controlling interest,according to SFAS 141(R)?

Accepted Answer

A) $0 
B) $7,500 
C) $17,500 
D) $25,000 
E) $70,000 
A) $0 
B) $7,500 
C) $17,500 
D) $25,000 
E) $70,000

Question 17

What is the dollar amount of Float Corp.'s net assets that would be represented on a balance sheet prepared immediately after consolidation according to the acquisition method per SFAS 141(R)?

Accepted Answer

A) $1,600,000 
B) $1,480,000 
C) $1,200,000 
D) $1,780,000 
E) $1,850,000 
A) $1,600,000 
B) $1,480,000 
C) $1,200,000 
D) $1,780,000 
E) $1,850,000

Question 18

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 19

In consolidation at January 1,2009,what adjustment is necessary for Hogan's Equipment account?

Accepted Answer

A) $4,000 increase 
B) $4,000 decrease 
C) $3,600 increase 
D) $3,600 decrease 
E) No change 
A) $4,000 increase 
B) $4,000 decrease 
C) $3,600 increase 
D) $3,600 decrease 
E) No change

Question 20

In a step acquisition,using the acquisition method per SFAS 141(R),which of the following statements is false?

Accepted Answer

A) The acquisition method views a step acquisition essentially the same as a single step acquisition 
B) Income from subsidiary is computed by applying a partial year for a new purchase acquired during the year 
C) Income from subsidiary is computed for the entire year for a new purchase acquired during the year 
D) Obtaining control through a step acquisition is a significant re-measurement event 
E) Pre-acquisition earnings are included on the consolidated income statement 
A) The acquisition method views a step acquisition essentially the same as a single step acquisition 
B) Income from subsidiary is computed by applying a partial year for a new purchase acquired during the year 
C) Income from subsidiary is computed for the entire year for a new purchase acquired during the year 
D) Obtaining control through a step acquisition is a significant re-measurement event 
E) Pre-acquisition earnings are included on the consolidated income statement

In consolidation,the total amount of expenses related to Kailey and to Denber's acquisition of Kailey for 2009 is determined to be

When a parent uses the acquisition method for business combinations and sells shares of its subsidiary,which of the following statements is false?

What is consolidated current assets as of January 2,2009?

What is the consolidated balance of the Equipment account?

What amount should have been reported for the land on a consolidated balance sheet,according to SFAS 141(R),using the acquisition method?

In consolidation at January 1,2009,what adjustment is necessary for Hogan's Patent account?

What is the non-controlling interest's share of the subsidiary's net income and what is the ending balance of the non-controlling interest in the subsidiary?

In consolidation at December 31,2010,what adjustment is necessary for Hogan's Equipment account?

What is the net effect of the inclusion of Harbor on consolidated net income for 2009?

When a parent uses the initial value method throughout the year to account for investment in a subsidiary,which of the following statements is true before making adjustments on the consolidated worksheet?

In consolidation at December 31,2009,what adjustment is necessary for Hogan's Land account?

The non-controlling interest's share of the earnings of Harbor Corp.is calculated to be

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

In consolidation at December 31,2009,what net adjustment is necessary for Hogan's Patent account?

What amount of excess land allocation would be included for the calculation of non-controlling interest,according to SFAS 141(R)?

What is the dollar amount of Float Corp.'s net assets that would be represented on a balance sheet prepared immediately after consolidation according to the acquisition method per SFAS 141(R)?

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

In consolidation at January 1,2009,what adjustment is necessary for Hogan's Equipment account?

In a step acquisition,using the acquisition method per SFAS 141(R),which of the following statements is false?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 4: Consolidated Financial Statements and Outside Ownership

In consolidation,the total amount of expenses related to Kailey and to Denber's acquisition of Kailey for 2009 is determined to be

When a parent uses the acquisition method for business combinations and sells shares of its subsidiary,which of the following statements is false?

What is consolidated current assets as of January 2,2009?

What is the consolidated balance of the Equipment account?

What amount should have been reported for the land on a consolidated balance sheet,according to SFAS 141(R),using the acquisition method?

In consolidation at January 1,2009,what adjustment is necessary for Hogan's Patent account?

What is the non-controlling interest's share of the subsidiary's net income and what is the ending balance of the non-controlling interest in the subsidiary?

In consolidation at December 31,2010,what adjustment is necessary for Hogan's Equipment account?

What is the net effect of the inclusion of Harbor on consolidated net income for 2009?

When a parent uses the initial value method throughout the year to account for investment in a subsidiary,which of the following statements is true before making adjustments on the consolidated worksheet?

In consolidation at December 31,2009,what adjustment is necessary for Hogan's Land account?

The non-controlling interest's share of the earnings of Harbor Corp.is calculated to be

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

In consolidation at December 31,2009,what net adjustment is necessary for Hogan's Patent account?

What amount of excess land allocation would be included for the calculation of non-controlling interest,according to SFAS 141(R)?

What is the dollar amount of Float Corp.'s net assets that would be represented on a balance sheet prepared immediately after consolidation according to the acquisition method per SFAS 141(R)?

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

In consolidation at January 1,2009,what adjustment is necessary for Hogan's Equipment account?

In a step acquisition,using the acquisition method per SFAS 141(R),which of the following statements is false?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters