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Question 1 Answer saved Marked out of 1.00 r Remove ag Chesney Company is a whollyowned subsidiary company which reports sales of $750,000 and net income of $250,000 for the calendar year in which it is acquired on May 'I st. What amount of sales and net income are includable in consolidated income statement in the year of acquisition assuming that sales and net income are earned evenly over the year? Select one: I?) A. Sales $500,000; Net income $166,667 0 B. Sales $250,000; Net income $83,333 0 C. Sales $?50,000; Net income $250,000 0 D. Answer cannot be determined based on the given information. Save Answers Next 0 Question 4 Answer saved Marked out of 1.00 7 Remove ag Assume the following facts are about a parent and its 75% owned subsidiary company: Parent Subsidiary Net income $200,000 $76,000 Common shares outstanding 45,000 30,000 (22,500 = 75% owned by parent) Convertible Preferred Stock Dividends = $25,000 Convertible into 5,000 shares of common stock Convertible Bonds What is the diluted earnings per share? Select one: Q) A. $5.06 0 B. $4.00 0 C. $6.18 0 D. $2.35 Interest expense after tax = $5,000 Convertible into 4,000 shares of common stock Question 7 Answer saved Marked out of 1.00 7 Remove ag On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $"l 2,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the House's stockholdersr equity on the date of acquisition is $10,000,000 and its fairvalue of identifiable net assets is $10,850,000. The acquisition date acquisition accounting premium (AAP) is allocated $600,000 to equipment with a remaining useful life of 10 years, and $250,000 to a patent with a remaining useful life of 5 years. Determine the total goodwill to be recognized at acquisition date. Select one: 0 A. $-0- O B. $23,400,000 O C. $ 4,650,000 '5.) D. $ 4,400,000 3 Previous Save Answers Next 0 Question 10 Answer saved Marked out of 'I .00 7 Remove ag Bond Company sells inventory to its subsidiary, Esquivel Company, at a profit during 2020. If Bond uses the cost method to account for its investment in Esquivel, which of the following choices would be a debit entry in the consolidated worksheet for 2021? Select one: 0 A. Inventory 0 B. Sales 0 C. Investment in subsidiary I?) D. Cost of goods sold a Previous Save Answers Question 14 Answer saved Marked out of 1 .00 7 Remove ag On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $1 2,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the House's stockholdersr equity on the date of acquisition is $10,000,000 and its fairvalue of identifiable net assets is $10,850,000. The acquisition date acquisition accounting premium (AAP) is allocated $600,000 to equipment with a remaining useful life of 10 years, and $250,000 to a patent with a remaining useful life of 5 years. Assume that during the year ended December 31, 2021, House reports net income of $950,000 and pays dividends of$150,000. Gooch uses the equity method to account for its investment in House. Determine the December 31, 2021 ending balance in Gooch Company's pre-consolidation equity investment account. Select one: C) A. $12,952,000 O B. $12,400,000 O C. $13,090,000 O D. $13,040,000 3 Previous Save Answers Next 0 Question 15 Answer saved Marked out of 1 .00 7 Remove ag On January 1, 2021, Gooch Company acquires 80% of the outstanding common stock of House Inc., for a purchase price of $1 2,400,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $3,100,000. The book value of the House's stockholdersr equity on the date of acquisition is $10,000,000 and its fairvalue of identifiable net assets is $10,850,000. The acquisition date acquisition accounting premium (AAP) is allocated $600,000 to equipment with a remaining useful life of 10 years, and $250,000 to a patent with a remaining useful life of 5 years. Assume that during the year ended December 31, 2021, House reports net income of $950,000 and pays dividends of$150,000. Gooch uses the cost method to account for its investment in House. Determine the December 31, 2021 ending balance in Gooch Company's pre-consolidation equity investment account. Select one: Q A. $13,090,000 O B. $13,040,000 '33 C. $12,400,000 O D. $12,952,000 3 Previous Save Answers Next 0 Question 20 Answer saved Marked out of 'I .00 7 Remove ag Bond Company sells inventory to its subsidiary, Esquivel Company, at a profit during 2020. If Bond uses the cost method to account for its equity investment in Esquivel, which of the following would be credited in the consolidated worksheet for 2021? Select one: 0 A. Investment in subsidiary O B. Inventory 0 C. Sales [3) D. Cost of goods sold 0 Previous Save Answers Finish attempt 0
