Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
9Activity
0 of .
Results for:
No results containing your search query
P. 1
Advanced Accounting Baker Test Bank - Chap004

Advanced Accounting Baker Test Bank - Chap004

Ratings: (0)|Views: 4,547 |Likes:
Published by donkazotey

More info:

Published by: donkazotey on May 26, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

06/11/2013

pdf

text

original

 
Chapter 04 - Consolidation of Wholly Owned Subsidiaries
Chapter 04Consolidation of Wholly Owned Subsidiaries
 
Multiple Choice Questions
 
On July 1, 2009, Link Corporation paid $340,000 for all of Tinsel Company's outstandingcommon stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilitieswere as follows: 1. Based on the preceding information, the differential reflected in a consolidation workpaper to prepare a consolidated balance sheet immediately after the business combination is:A. $0.B. $25,000.C. $70,000.D. $45,000.
 
2. Based on the preceding information, what amount should be allocated to goodwill in theconsolidated balance sheet, prepared after this business combination?A. $0B. $25,000C. $70,000D. $45,000
 
4-1
 
Chapter 04 - Consolidation of Wholly Owned Subsidiaries
On December 31, 2009, Add-On Company acquired 100 percent of Venus Corporation'scommon stock for $300,000. Balance sheet information Venus just prior to the acquisition isgiven here: At the date of the business combination, Venus's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, land which had a fair value of $125,000, and buildings and equipment (net), which had a fair value of $250,000.
 
3. Based on the information provided, what amount of inventory will be included in theconsolidated balance sheet immediately following the acquisition?A. $60,000B. $75,000C. $15,000D. $45,000
 
4-2
 
Chapter 04 - Consolidation of Wholly Owned Subsidiaries
4. Based on the information provided, what amount of goodwill will be included in theconsolidated balance sheet immediately following the acquisition?A. $30,000B. $15,000C. $85,000D. $45,000
 
5. Based on the information provided, what amount of differential will be reflected in aconsolidation workpaper to prepare a consolidated balance sheet immediately after the businesscombination?A. $0B. $45,000C. $15,000D. $85,000
 
6. Based on the information provided, what amount will be included as investment in VenusCorporation in the consolidated balance sheet immediately following the acquisition?A. $0B. $395,000C. $255,000D. $300,000
 
4-3

Activity (9)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
jinhuixuanl liked this
jinhuixuanl liked this
Frank Cortez liked this
Brenda Harris liked this
John Lai liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->