8:41 docs.google.com 1. From an investor's point of view, a liquidating dividend from an investee is: A dividend declared by the investee in excess of its earnings in the current year. A dividend declared by the investee in excess of its earnings since acquisition by the investor Any dividend declared by the investee since acquisition A dividend declared by the investee in excess of the investee's retained earnings E. None of the above 2. If Push Company owned 51 percent of the outstanding common stock of Shove Company, which reporting method would be appropriate? Cost method Consolidation Equity method Merger method E. None of the above al 8:41 docs.google.com 3. Miguel Corporation and Forest Company merged as of January 1, 2019. Miguel paid finder's fees of $36.000 and legal fees of $8.000. Miguel also paid audit fees related to the stock issuance of $12,000, stock registration fees of $7.000, and stock listing application fees of $3,000. Based on the preceding information, under the acquisition method, what amount relating to the business combination would be expensed? $22.000 $36,000 $44,000 $66,000 E. None of the above 4. Mercury Corporation acquired 100 percent of the stock of Jupiter Company when the book value of Jupiter's net assets was $250.000. The fair value of Jupiter's net assets was $280,000 on the acquisition date. What amount of goodwill would be reported in the consolidated financial statements presented immediately following the combination if Mercury paid $295,000 for the acquisition? $0 $5,000 $15,000 $45,000 P None of the above 8:41 docs.google.com 5. At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After exactly 4 years, it transferred these assets and cash of $75,000 to a newly created subsidiary. Selvick Company, in exchange for 25,000 shares of Selvick's $5 par value stock. Peacock uses the straight-line method for depreciation. When purchased, the building had a useful life of 20 years with no expected salvage value. An appraisal at the time of the transfer revealed that the building has a fair value of $250.000. Based on the information provided what amount would be reported by Peacock Company as investment in Selvick Company's common stock? $125,000 $250,000 $301,000 $345,000 None of the above 6. Grant Inc. acquired 30 percent of South Co.'s voting stock for $200,000 on January 2. 2019. Grant's 30 percent interest in South gave Grant the ability to exercise significant ! 8:41 docs.google.com 6. Grant Inc. acquired 30 percent of South Co.'s voting stock for $200.000 on January 2.2019. Grant's 30 percent interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. During 2019. South earned an income of $80.000 and paid dividends of $50.000. In Grant's December 31, 2019. balance sheet what should be the carrying amount of this investment? $224,000 $200,000 $234,000 $209,000 None of the above 7. The fair value of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit's net assets on Y Company's books is $320,000, including $50.000 goodwill. If the reported goodwill impairment for the unit is $10,000, what would be the fair value of the reporting unit? $310,000 $320,000 $270,000 $290,000 None of the home 8:42 docs.google.com None of the above 8. Phips Co. purchased 100 percent of Sips Company on January 1, 2019, when the retained earnings balance of Phips was $320,000 and that of Sips was $120,000. During 2019. Sips reported $20.000 of net income and declared $8,000 of dividends. Phips reported $125,000 of separate operating earnings plus $20,000 of equity- method income from its 100 percent interest in Sips: Phips declared dividends of $35,000. Based on the preceding information, what was Phips' post-closing retained earnings balance on December 31. 2019? $305,000 $410,000 $430,000 $465,000 None of the above 9. Parent Company purchased 100 percent of Son Inc. on January 1, 20x2 for $420,000. Son reported earnings of $82.000 and declared dividends of $4.000 during 20x2. 8:42 .docs.google.com $430,000 $465,000 None of the above 9. Parent Company purchased 100 percent of Son Inc. on January 1, 20x2 for $420,000. Son reported earnings of $82,000 and declared dividends of $4.000 during 20x2. If Parent uses the cost method to account for its investment in Son, what is the balance in Parent's Investment in Son account on December 31, 20x2. prior to consolidation? $424,000 $418,000 $416,000 $0 None of the above 10. On January 2, 2019, Pilates Inc. paid $1,400,000 to acquire all the net assets of Spinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below. 8:42 docs.google.com 10. On January 2, 2019. Pilates Inc. paid $1,400,000 to acquire all the net assets of Spinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below. Cash $350,000 Accounts Receivable 300,000 Copyrights (purchased) 500,000 Goodwill 380,000 Liabilities 200,000 On January 2, 2019, Spinning anticipated collecting $270.000 of the recorded Accounts Receivable. Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $170,000. What was the amount of goodwill that would be reported on Pilate's balance sheet as of the date of acquisition? $215,000 $310,000 $290,000 $185,000 None of the above 8:42 docs.google.com None of the above 11. Clocktower Corporation reported net income for the current year of $370,000 and paid cash dividends of $50,000. Slide Company holds 40 percent of the outstanding voting stock of Clocktower. However, another corporation holds the other 60 percent ownership and does not take Slide's wants and wishes into consideration when making financing and operating decisions for Clocktower. What investment income should Slide recognize for the current year? $20,000 $0 $148,000 $128,000 None of the above Page 3 of 6 Back Next Never submit passwords through Google Forms. This form was created inside of Lebanese International University Report Abuse Cool