Hello, I need these answers in two hours, please help! 1. Topic: Complete equity method If the parent company uses the complete equity method when accounting for its wholly-owned subsidiary on its own books the parent's total assets will equal consolidated assets. the parent's net income will equal consolidated net income the parent's revenues will equal consolidated revenues. the parent's total long-term assets will equal consolidated long-term assets. 2. Topic: Goodwill impairment A division's goodwill is not impaired, per U. S. GAAP, if: the fair value of the division is less than the book value of the division. the fair value of the division is more than the book value of the division. the fair value of the identifiable net assets of the division is less than the fair value of the division. the fair value of the identifiable net assets of the division is more than the fair value of the division. 3. Topic: Goodwill impairment, IFRS A division's goodwill is not impaired, per IFRS, if: the fair value of the division is less than the book value of the division. the fair value of the division is more than the book value of the division. the fair value of the identifiable net assets of the division is less than the fair value of the division. the fair value of the identifiable net assets of the division is more than the fair value of the division. 4. Topic: Impairment of identifiable intangibles, goodwill Which of the following intangible assets, recognized in an acquisition, are not amortized, but are regularly tested for impairment? only goodwill only goodwill and identifiable intangibles with indefinite lives only identifiable intangibles with indefinite lives only identifiable intangibles with limited lives and with indefinite lives 5. Topic: Goodwill impairment Annual goodwill impairment loss, if significant, must be reported on a company's income statement after income from continuing operations. as part of other comprehensive income. as a separate line item in operating expenses. as a component of selling and administrative expenses. 6. Topic: Revaluation write-offs An acquiring company wants to maximize its consolidated current and future income. It acquires another company for a price well in excess of the company's book value. Which allocation of the excess of acquisition cost over book value will best meet the company's earnings goals? Allocate the excess to goodwill. Allocate the excess to trademarks with indefinite lives. Allocate the excess to land. Allocate the excess to in-process research and development. 7. Topic: Goodwill impairment Goodwill acquired in a merger must be allocated to business units before it can be tested for impairment. How are these "business units" defined? The choice of business units is at the discretion of management. The business units are defined geographically. The business units are defined by product line. The business units are the reportable units used for segment reporting. 8. Topic: Goodwill impairment Which one of the following actions will maximize the amount of reported goodwill impairment? Allocate as much goodwill as possible to the most profitable business units. Allocate as much goodwill as possible to the least profitable business units. Allocate as much excess of acquisition cost over book value as possible to identifiable intangibles. Allocate as much excess of acquisition cost over book value as possible to tangible assets. 9. Topic: Goodwill impairment When SFAS 142 went into effect, requiring companies to report goodwill impairment losses for the first time, many companies reported large impairment losses. Reasons for this include all of the following except: Goodwill reported under previous practice overstated its actual market value. Impairment losses were required to be reported as ordinary operating expenses. Goodwill was allocated to poorly performing reporting units. Acquisition cost exceeded the actual value of the acquired company. 10. Topic: Goodwill impairment For goodwill impairment testing per U. S. GAAP, the fair value of a reporting unit's goodwill is calculated as: the fair value of the unit less its book value. the fair value of the unit's identifiable net assets. the fair value of the unit less the fair value of its identifiable net assets. the fair value of the unit's total assets less the book value of its liabilities. 11. Topic: Revaluations of identifiable net assets, subsequent years In an acquisition, a subsidiary's land, inventory (FIFO), and fixed assets (12 year life) are revalued. It is now 15 years after the acquisition. In consolidation, elimination entry (R) affects none of the assets. only land. only land and fixed assets. land, fixed assets and inventory. 12. Topic: Valuation of noncontrolling interest Which is the best measure of fair value per share for the noncontrolling interest in a subsidiary at the date of acquisition, if the subsidiary's stock is actively traded? The parent's acquisition cost per share. The market value per share. The parent's acquisition cost per share less a discount per share for noncontrolling interest. The present value of the subsidiary's future cash flows, on a per share basis. 13. Topic: Display of noncontrolling interest on consolidated income statement As compared with past practice, SFAS 160 requirements for displaying noncontrolling interests in the consolidated income statement: Reduce consolidated net income Reduce consolidated revenue Increase consolidated net income Increase consolidated revenue 14. Topic: Display of noncontrolling interest on consolidated financial staements Noncontrolling interest is reported on the consolidated financial statements as: An asset on the consolidated balance sheet A distribution of consolidated net income on the consolidated income statement An expense on the consolidated income statement A liability on the consolidated balance sheet 15. Topic: IFRS for noncontrolling interest U. S. GAAP and IFRS can differ on valuation of noncontrolling interests on the consolidated balance sheet. Assume a parent owns 90% of a subsidiary, acquired several years ago. Which statement is true? IFRS allows noncontrolling interests to be reported at the current market value of the shares held by the noncontrolling interests. IFRS requires noncontrolling interests to be reported at fair value at the date of acquisition, adjusted for the accumulated noncontrolling interests' share of the subsidiary's net income and dividends since acquisition. IFRS allows noncontrolling interests to be reported at 10% of the current fair value of the subsidiary's identifiable net assets. IFRS allows noncontrolling interests to be reported at 10% of the fair value of the subsidiary's identifiable net assets at the date of acquisition, adjusted for the accumulated noncontrolling interests' share of the subsidiary's net income and dividends since acquisition. 16. Topic: IFRS for noncontrolling interest Assume a parent acquires 75% of the stock of a subsidiary, in an acquisition in which goodwill is reported. If goodwill is not impaired, on the consolidated income statement the noncontrolling interest in net income as measured by U. S. GAAP is: Always less than noncontrolling interest in net income as measured using IFRS Always the same as noncontrolling interest in net income as measured using IFRS Always greater than noncontrolling interest in net income as measured using IFRS Greater than the noncontrolling interest in net income as measured using IFRS, but only if the alternative valuation method allowed by IFRS is used 17. Topic: Display of noncontrolling interest on consolidated financial statements Noncontrolling interest is reported on the consolidated financial statements as: A revenue on the consolidated income statement An equity on the consolidated balance sheet A reduction in retained earnings on the consolidated statement of retained earnings An expense on the consolidated income statement 18. Topic: Valuation of noncontrolling interest Which statement is true concerning valuation of noncontrolling interests at the date of acquisition per U. S. GAAP? Per-share value of the noncontrolling interest is likely to be higher than the acquisition price per share. Market price per share is the best measure of noncontrolling interest value if the stock is not actively traded. The main difference in per-share value between the controlling and noncontrolling interest is a control premium for the acquirer's interest. The per-share fair value of the controlling and noncontrolling interest is likely to be the same, due to market pressures. 19. Topic: Display of noncontrolling interest on consolidated income statement Where is the noncontrolling interest in consolidated net income reported? As a contra equity account in the equity section of the consolidated balance sheet. As a component of accumulated other comprehensive income. On the consolidated income statement as a distribution of consolidated net income. On the consolidated income statement as an expense, deducted to get consolidated net income. 20. Topic: Noncontrolling interest, bargain purchase, subsequent years An acquired company's assets all have fair values greater than book values. When compared with an acquisition with goodwill, an acquisition reported as a bargain purchase generally results in: Lower revaluation of plant & equipment Lower revaluation of identifiable intangibles Lower consolidated dividends Lower noncontrolling interest in equity