1 At the start of the current year, SBC Corp purchased 30 of Sky Tech Inc for $38 million At the time of purchase, the carrying value of Sky Tech's net assets was $72 million The fair value of Sky Tech's depreciable assets was $18 million in excess of their book value For this year, Sky Tech reported a net income of $72 million and declared and paid $18 million in dividends The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is Multiple Choice None of these answer choices are correct $5 4 million $18 million $27 million 2 On January 2, 2018, Howdy Doody Corporation purchased 17 of Ranger Corporation's common stock for $53,000 Ranger's net income for the years ended December 31, 2018 and 2019, were $15,000 and $57,000, respectively During 2018, Ranger declared and paid a dividend of $66,500 On December 31, 2018, the fair value of the Ranger stock owned by Howdy Doody had increased to $68,000 How much should Howdy Doody show in the 2018 income statement as income from this investment Multiple Choice $21,000 $15,000 $11,305 $26,305 3 Minarski Electronics sells computers and provides hardware maintenance services On April 1 st , Minarski sold a package deal containing a computer and a one year unlimited maintenance repair service for the computer at a bundle price of $1,000 If sold separately, the computer costs $732 and the one year unlimited maintenance repair service costs $468 How much revenue does Minarski Electronics recognize for the month ended April 30 th , assuming that revenue is accrued monthly Multiple Choice $642 50 $39 00 $1,000 $771 00 4 Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $60 per bond and classified the investment as securities available for sale The value of the Diamond investment was $89 per bond on December 31, 2016, and $107 on December 31, 2017 During 2018, Hawk sold all of its Diamond investment at $148 per bond In its 2018 income statement, Hawk would report Multiple Choice A gain of $1,350,000 A loss of $470,000 A gain of $410,000 A gain of $880,000

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1. At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $38 million. At the time of purchase, the

1. At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $38 million. At the time of purchase, the carrying value of Sky Tech's net assets was $72 million. The fair value of Sky Tech's depreciable assets was $18 million in excess of their book value. For this year, Sky Tech reported a net income of $72 million and declared and paid $18 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:

Multiple Choice

None of these answer choices are correct.
$5.4 million.
$18 million.
$27 million.

2. On January 2, 2018, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for $53,000. Ranger's net income for the years ended December 31, 2018 and 2019, were $15,000 and $57,000, respectively. During 2018, Ranger declared and paid a dividend of $66,500. On December 31, 2018, the fair value of the Ranger stock owned by Howdy Doody had increased to $68,000. How much should Howdy Doody show in the 2018 income statement as income from this investment?

Multiple Choice

$21,000.
$15,000.
$11,305.
$26,305.

3. Minarski Electronics sells computers and provides hardware maintenance services. On April 1^st, Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $732 and the one-year unlimited maintenance/repair service costs $468. How much revenue does Minarski Electronics recognize for the month ended April 30^th, assuming that revenue is accrued monthly?

Multiple Choice

$642.50
$39.00
$1,000
$771.00

4. Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $60 per bond and classified the investment as securities available for sale. The value of the Diamond investment was $89 per bond on December 31, 2016, and $107 on December 31, 2017. During 2018, Hawk sold all of its Diamond investment at $148 per bond. In its 2018 income statement, Hawk would report:

Multiple Choice