Multiple choice solution

5- If the Fxcess cost over the hook value was 5.190.000, assuming the inventery was undervalued by $50,000, building is undervalued by 560,000 , the Note payable overvalued by $20,000 then the Geodwill ameunt woshl equal : a.$80,000b.$60,000c$100,000d.$150,000 6. Conselidated rctained earnings consist of beginning consolidated retained carningst a- plus consolidated net income plus parent company dividends. b- plus consolidated net income less parent company dividends. c. plus consolidated net income plus subsidiary company dividends. d - plus consolidated net income less subsidiary company dividends. 7. When cest >BV and FF=BV there will be at only goodwill b - no good will but there is excess cost over book value c- No goodwill or gain on bargain purchase d- good will and excess cost over book value 8. The amortization entry related to the building accoent when it is guendervalued a. Dr cost of good sold Cr building b. Dr bulding Cr interest expense c- Dr depreciation expenses Cr building d- Dr building Cr depreciation expenses Which of the following elements should be presented separately on the investor's income statement? 3. Extraordinary items b- Discontinued operations c. Prior period adjustments d- All of the above should presented separately. 9. Under the Gair method the Unrealiest rains and losses associated with 'trading" securities will recorded as a part of the: a- income b- asset c- investment d. other comprehensive income 10- What method of aceeunting will generally be used when ene company purchases between 20% to 50% and the invester has the ability to exercise significant influcnee on the investec eperations: a- The fair value mothod b- The equity method c. Either the fair value method or the equity method may be used d. Neither the fair value method nor the equily method may be used 11- Under the fair value method, the eavh dividends rectived by the investor fron the investee should be recerded as 7 a. Dividend income. b. increase to investment account c. deduction from the owner equity account. d. deduction from the imvestment account 12. If steck is purchased prodebly uniweed share, the percentase emnerahis is based a. on the previously outstanding shares. b. shares acquired * previously culstanding shares. c. on the shares acquired d. none of the above