During its inception, Devon Company purchased land for $100,000 and a building fo Aft er exactly 3 years, it transferred these assets and cash of $50,000 to a newly creatod sbsidiary, Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock Devon uses straight-line depreciation. Useful life for the building is 30 years, with zero resida value. An appraisal revealed that the building has a fair value of $200,000. 5) Based on the information provided, at the time of the transfer, Regan Company shovld recons Building at $180,000 and no accumulated depreciation B) Building at $162,000 and no accumulated depreciation. C) Building at $200,000 and accumulated depreciation of $24,000. D) Building at $180,000 and accumulated depreciation of $18,000 6) If Push Company owned 51 percent of the outstanding common which method would be appropriate for financial reporting purposes A) Cost method B) Full consolidation method C) Equity method D) Fair value method stock of Shove Company, 7) Usually, an investment of 20 to 50 percent in another company's voting stock is reported under the A) cost method. B) full consolidation method. C) equity method. D) fair value method. 8) In the case of an investment in equity securities where the investor does not have significant influence and the investment is carried at fair value, a dividend from the investee is: A) A reduction of the carrying amount of the investment. B) Income to the investor in the period of declaration. C) An expense to the investor in the period of declaration. D) A direct incre fset the direct decrease to retained ase to retained earnings of the investor to of 9) Which of the following observations is NOT consistent with the accounting for investments in equity securities where there is no significant influence? A) Changes in the number of investment shares resulting from stock dividends, stock splits,or reverse splits must be formally recorded by the investor. B) Investments are carried by the investor at fair value. earnings of the investee. investee. D) When the securities are difference is an unrealized gain or loss to be recognized in income. C) The investor recognizes income from the investment as dividends are declred by the remeasured to fair value as of the end of each period, any resaltir