REFERENCE: Ref.03_06 Kaye Company Acquired 100% of Fiore Company on January 1,2009.Kaye

Multiple Choice

REFERENCE: Ref.03_06
Kaye Company acquired 100% of Fiore Company on January 1,2009.Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year.Fiore reported net income of $400 in 2009 and paid dividends of $100.
-Assume the initial value method is used.In the years subsequent to acquisition,what additional worksheet entry must be made for consolidation purposes that is not required for the equity method?

A) Entry A.
B) Entry B.
C) Entry C.
D) Entry D.
E) Entry E.