11 On January 1, 2008, Parent Company acquired 80 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 20 percent of the book value of Subsidiary Corporation. On March 17, 2008, Subsidiary purchased inventory from Parent for $230,000 Subsidiary sold the entire inventory to an unaffiliated company fo $270,000 on November 21, 2008. Parent had produced the inventory sold to Subsidiary for $170,000. The companies had no other transactions during 2008 Based on the information given above, what amount of sales will be reported in the 2008 consolidated income statement? a. So b. $270,000 c. $500.000 d. None of the above 12 a. Separately reportable operating segments are segments for which separate tax returns must be filed b. for which separate supplement disclosures must be made c. defined by the United States Congress d. that only exist in oil and gas companies 13 A significant event affecting a company registered under the Securities and Exchange Act of 192 should be reported on: a. Form 10-K b. Form S-1 c. Form 8-K d. Form 11-K 14 After determining which of the segments is reportable under any of the three 10 percent tests, company must apply a comprehensive test. The comprehensive test is the a. 10 percent revenue test b. 10 percent major customer test c. 75 percent consolidated revenue test d. none of the above 11 On January 1, 2008, Parent Company acquired 80 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 20 percent of the book value of Subsidiary Corporation. On March 17, 2008, Subsidiary purchased inventory from Parent for $230,000 Subsidiary sold the entire inventory to an unaffiliated company fo $270,000 on November 21, 2008. Parent had produced the inventory sold to Subsidiary for $170,000. The companies had no other transactions during 2008 Based on the information given above, what amount of sales will be reported in the 2008 consolidated income statement? a. So b. $270,000 c. $500.000 d. None of the above 12 a. Separately reportable operating segments are segments for which separate tax returns must be filed b. for which separate supplement disclosures must be made c. defined by the United States Congress d. that only exist in oil and gas companies 13 A significant event affecting a company registered under the Securities and Exchange Act of 192 should be reported on: a. Form 10-K b. Form S-1 c. Form 8-K d. Form 11-K 14 After determining which of the segments is reportable under any of the three 10 percent tests, company must apply a comprehensive test. The comprehensive test is the a. 10 percent revenue test b. 10 percent major customer test c. 75 percent consolidated revenue test d. none of the above