6)The unamortized excess account is

a.the excess purchase cost that is attributable to goodwill.

b.the excess purchase cost that is attributable to a bargain purchase.

c.the excess purchase cost over the subsidiarys net assets book value

d.the excess purchase cost over the subsidiarys net assets fair value.

7)Pepper Company owns a majority interest in Salt Company and consolidated financial statements are prepared for external reporting. The entry on Peppers books to record amortization of a difference related to undervalued equipment from the Investment in Salt will be:

Select one:

a.A debit to Income from Salt and a credit to Equipment

b.A debit to Depreciation expense and a credit to Accumulated Depreciation

c.A debit to Operating expense and a credit to Equipment

d.A debit to Income from Sean and a credit to the Investment in Sean account

8)Workpaper eliminating entries are:

Select one:

a.Posted to the general ledger of the subsidiary company

b.Posted to the general ledger of the parent company

c.Posted to either the general ledger of the parent or the subsidiary company as appropriate for the entry

d.Are not posted to the general ledger of either company