1. A subsidiary still holds all net assets revalued at the date of acquisition. Which working paper eliminating entry below is most likely to be the same whether the consolidation takes place at the date of acquisition or in subsequent years?

Select one:

a. Write-off eliminating entry (O) for identifiable intangibles

b. Equity eliminating entry (E) for retained earnings

c. Revaluation eliminating entry (R) for land

d. Revaluation eliminating entry (R) for goodwill

2.

A company uses IFRS, and chooses to report certain generic intangible assets at fair value. On January 1, 2015, it acquires software for 100,000, with an estimated life of 4 years, straight-line. On December 31, 2015, the intangible has a fair value of 110,000. How is this change in value reported on the 2015 financial statements?

Select one:

a. Other comprehensive gain, 10,000

b. Other comprehensive gain, 35,000

c. Gain on the income statement, 35,000

d. Not reported

3.

Assume a company skips Step 0. A divisions goodwill is not impaired, per U.S. GAAP, if:

Select one:

a. The fair value of the division is less than the book value of the division.

b. The fair value of the division is more than the book value of the division.

c. The fair value of the identifiable net assets of the division is less than the fair value of the division.

d. The fair value of the identifiable net assets of the division is more than the fair value of the division.