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12) When the equity method is used to account for investments in common stock, which of the following affects the investor's reported income? Cash dividends
12) When the equity method is used to account for investments in common stock, which of the following affects the investor's reported income? Cash dividends from investee Yes Yes No No Excess amortization expense related to the purchase A) Yes No No Yes B) C) D) 13) Castonguay Co. issues 200,000 shares of $1 par value common stock, which is trading at $12 per share, to acquire 100% of Bakarich Co. in a business combination. Legal and consulting fees incurred in relationship to the combination are $110,000. Direct registration and issuance costs for the common stock are $35,000. What should be recorded in Castonguay's additional paid-in capital (APIC) for this business combination? A) $2,055,000 B) $2,090,000 C) $2,165,000 D) $2,200,000 E) $2,400,000
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