ADVANCED ACCOUNTING WEEK 3 FOR-CREDIT HOMEWORK QUESTIONS (CH4 LO1-7) AUTUMN, 2023 DUE TO BE TURNED IN AT THE START OF CLASS ON TUESDAY, 09/26/23. 4 POINTS PER QUESTION 1. Differential (= "Excess Value") from a STOCK ACQUISITION is present on a parent company's financial statements if the consideration paid by the parent company to the subsidiary's shareholders is: A. greater than the book value (= general ledger amounts) of the subsidiary's net assets. B. greater than the book value of the subsidiary's net asset minus any identifiable excess. C. greater than the book value of the subsidiarv's net asset plus any identifiable excess. D. less than the book value of the subsidiary's net asset minus any identifiable excess 2. New Goodwill from a STOCK ACQUISITION is present on a parent company's financial statements if the consideration paid by the parent company to the subsidiary's shareholders is: A. greater than the book value (= general ledger amounts) of the subsidiary's net assets. B. greater than the book value of the subsidiary's net asset minus any identifiable excess. C. greater than the book value of the subsidiary's net asset plus any identifiable excess. D. less than the book value of the subsidiary's net asset minus any identifiable excess 3. Peter Corp. acquired 100% of Seller's Inc.'s outstanding common stock for $812,000. Immediately before the purchase, the balance sheets of both companies reported the following: On the stock acquisition date, the fair value of Seller's assets was $23,000 less than the total (aggregate) book value of the assets. In the consolidated balance sheet prepared immediately after the stock acquisition, the total consolidated stockholders' equity should be reported what amount? A. $1,586,000. B. 725,000. C. 2,311,000. D. 861,000 . Use the following information to answer questions 4 through 8 below. On January 1, 2022, Paul Corporation acquired 100% of the common stock of Simon Company for $887,000. The financial statements of the companies immediately after the acquisition are presented below: On the date of the stock acquisition, the book value of Simon's net assets and liabilities approximated their values EXCEPT for Inventory, which had a value of $150,000 and Land, which had a value of $365,000. REQUIRED: Answer the questions below as they relate to the CONSOLIDATED amounts to be reported on 01/01/2022: 4. What amount of Inventory will be reported? A. $168,000 B. $382,000 C. $364,000 D. $400,000 5. What amount of Land will be reported? A. $575,000 B. $325,000 C. $615,000 D. $535,000 6. What amount of New Goodwill will be reported? A. $35,500 B. $151,500 C. $93,500 D. $71,500 7. What amount of Total Stockholders' Equity will be reported? A. $2,037,350 B. $1,727,350 C. $1,243,850 D. $793,500 8. What amount will be reported for the Investment in Simon? A. $87,000 B. $0 C. $815,500 D. $909,000