18 19 a When a subsidiary is purchased during a fiscal period rather than at the beginning or end, the results of the subsidiary's operations are included in the consolidated statements the year that the stock is owned by the parent a. only for the portion of b. always for half of c. for the whole year of d. at an amount of zero for The costs of audits and legal work related to the issuance of stock in a business combination treated as: a. Ignored b. a reduction of goodwill c. expensed when incurred d. a reduction of additional paid-in-capital What is the largest hypothetical loss resulting from the realization of partnership assets that accountant estimates when preparing a safe payment schedule? book value of recorded assets b. book value of recorded non-cash assets c. fair value of recorded assets d. fair value of recorded non-cash assets 220 a. 1 c. In a business combination A Company acquires the outstanding common stock of B Compan B Company then distributes its net assets to A Company and ceases to exist. This transactic is termed: a. an acquisition b. a consolidation a merger d. a pooling of interests The elimination entries in the consolidated working paper are recorded: on the parent's books only b. on the subsidiary's books only c. on both the parents and the subsidiary's books d. on neither the parent's nor the subsidiary's books a. 18 19 a When a subsidiary is purchased during a fiscal period rather than at the beginning or end, the results of the subsidiary's operations are included in the consolidated statements the year that the stock is owned by the parent a. only for the portion of b. always for half of c. for the whole year of d. at an amount of zero for The costs of audits and legal work related to the issuance of stock in a business combination treated as: a. Ignored b. a reduction of goodwill c. expensed when incurred d. a reduction of additional paid-in-capital What is the largest hypothetical loss resulting from the realization of partnership assets that accountant estimates when preparing a safe payment schedule? book value of recorded assets b. book value of recorded non-cash assets c. fair value of recorded assets d. fair value of recorded non-cash assets 220 a. 1 c. In a business combination A Company acquires the outstanding common stock of B Compan B Company then distributes its net assets to A Company and ceases to exist. This transactic is termed: a. an acquisition b. a consolidation a merger d. a pooling of interests The elimination entries in the consolidated working paper are recorded: on the parent's books only b. on the subsidiary's books only c. on both the parents and the subsidiary's books d. on neither the parent's nor the subsidiary's books a