Multiple Choice
Rocky Company acquired 40% of the voting stock of Boulder Company for $40 million.At the end of Year 1,Boulder Company reports net income of $15 million and pays cash dividends of $5 million.At the end of Year 1,the market value of Rocky Company's investment in Boulder Company is $44 million.The ________ method should be used by Rocky Company to account for the investment.
A) market-value
B) consolidated
C) cost
D) equity
Correct Answer:
Verified
Correct Answer:
Verified
Q87: Presented below is the balance sheet of
Q88: On January 1,2012,a parent company acquired all
Q89: Fisher Company acquired 80 percent of the
Q90: Vince Company purchased common stock in Gill
Q91: Rocky Company acquired 40% of the voting
Q93: The following information is available for Guess
Q94: At the date of acquisition by a
Q95: Company A acquired 100 percent of the
Q96: On January 1,2010,a parent company purchased 100
Q97: Dividends received from available-for-sale securities are reported