Question 1 According to the US GAAP: an excess of the fair value of net identiable assets acquired in a purchase business combination over the price paid (negative goodwill) is: 0 Applied to a reduction of nonmonetary assets to zero before the excess reported in the income statement. 0 Applied to reduce noncurrent assets other than marketable securities to zero before the excess reported in the income statement as an extra ordinary item. 0 Applied to reduce goodwill to zero before a deferred credit may be reported 0 Reported as a deferred credit and amortized over a maximum period of forty ye ars O Recognized as purchase bargain gain in the income statement of the acquisition period. Question 2 In a purchase business combination the direct cost of registering and issuing equity securities are: C) Deducted from income in the period of combination O Added to the parent-investor company's investment account O Reported in the Accumulated Other Comprehensive Income (AOCI). O Charged against other paidin capital of the parent-investor company 0 None of the above Question 3 1 ABC Corporation does not have a significant influence over its 10% investment in Yazd Corporation. If Yazd completed its first year following the acquisition with $15,000 net income and paid $12,000 dividend, how this information affects ABC's account of Investment in Yazd Corporation? O None of the above O Investment in Yazd is not affected due to using cost method. O Investment in Yazd is increased by $1,200 O Investment in Yazd is increased by $1,500. O Investment in Yazd is decreased by $300.Question 4 1 pts Balaji Corporation ofIndia is an SCI percent-owned subsidiary of Porter Corporation, a US. firm, and its functional currency is the [5.8. dollar. Balaji's books of record are maintained in Rupee and its inventory is carried at cost. The current exchange rate rupees at Dec. 31, 19X8 is $.48 The historical cost ofthe inventory is 1.1000 Rupees. The market value ofthe inventory is 11:000 Rupees. The historical exchange rate is $ 43 The S amount of inventory that will be reported in the remeasured statement= using temporal method, is: 0 12.000 ' 5.48 = $ 5.760 0 12.000 ' $.43 = $ 5.160 0 11.000 ' $.48 = $ 5.280 0 11.000 ' $.43 = $4.730 Question 6 1 pts The foreign currency financial statements of a subsidiary whose functional currency is its local currency are being converted into U.S. dollar financial statements. Which of the following items would be translated using the current exchange rate? O dividends O capital stock O retained earnings O Patent