or end, the at the When a subsidiary is purchased during a fircal peried rather I8 of the subsidiary's operations are incladed in the year that the stock is owned by the parent only for the portion of a. b. always for half of for the whole year of at an amount of zero for 19The costs of audits and legal work related to the c. d. treated as: a. Ignored b. a reduction of goodwill c. expensed when incurred d. a reduction of additional paid-in-capital What is the largest hypothetical loss from accountant estimates when preparing a safe payment schedule? oss resulting from the realization of partnership assets that the a. book value of recorded assets b. book value of recorded non-cash assets c. fair value of recorded assets d. fair value of recorded non-cash assets 21 21 In a business combination A Company acquires the outstanding common stock of B Company B Company then distributes its net assets to A Company and is termed: ceases to exist. This transaction a. an acquisition b. a consolidation e. a merger a apoolingof interests 22 The elimination entries in the consolidated working paper are recorded a. on the parent's books only b. on the subsidiary's books only c. on both the parent's and the subsidiary's books d. on neither the s nor the s books USE THE FOLLOWING INFORMATION FOR QUESTIONS 23 THROUGH 24 The Partnership agreement of Nancy, Olga, and Paula provides for the following distribution of profits and losses: Nancy Olga Paula Salary Interest on average capital Average capital balance... ...$60,000 $50,000 $40,000 10% 10% 10% $20,000 $30,000 $50,000 40% 30% 30% 23patrship net income for 20x1 is $300,000, what is Nancy's share a. $56,000 b. $100,000 c. $118,000 d. $120,000