Question 11 (2 points) Saved On January 1st 2018 Vadar Company paid $1,920,000 for 60,000 shares of the Skywalker Company's voting stock. This is 45% of Skywalker's voting stock so Vadar has influence over Skywalker. This purchase was at book value so no allocation to or assets or goodwill was needed. During 2018, Skywalker reported income of $670,000 and paid a $2.50 per share dividend. What is the balance does Vadar show in its December 31 2018 balance sheet for 'Investment in Skywalker'? Question 11 options: 2,040,500 2,071,500 1,920,000 2,212,500

Question 12 (2 points) Saved On January 1, 2018 the Clark Kent Company acquired 100% of the voting common stock of Lois Lane Inc. The book and fair value of Lois Lane Inc.'s accounts immediately prior to the acquisition are as follows; Inventory: fmv $ 210,000 book value $170,000 Land: fmv $240,000 book value $220,000 Building (net) $270,000 book value $240,000 Liabilities fmv $420,000 book value $430,000 Common stock: $120,000 retained earnings $240,000 Clark Kent issued 12,000 shares of stock worth $47 per share to acquire Lois Lane. What is the amount of goodwill in this transaction? Question 12 options: $64,000 $204,000 $104,000 $144,000

Question 13 (2 points) Saved When Big Company purchased 80% of Small Company, Small Company had a piece of land with a book value of $150,000 and a fair market value of $250,000. The appropriate worksheet entry at the end of the year would be: Question 13 options: debit land 80,000 debit NCI 20,000 credit investment in Small 100,000 debit land 100,000 credit investment in Small 80,000 credit NCI 20,000 debit land 100,000 credit investment in Small 100,000 debit land 80,000 credit investment in Small 80,000

Question 14 (2 points) Saved On January 1, 2018, Apple Company purchased 80% of Banana Company for $1,000,000 when the fair market value of Banana's net asset were $1,000,000. Under U.S. GAAP how much goodwill should be shown on this acquisition? Question 14 options: 0 800,000 250,000 200,000

Question 15 (2 points) Saved On January 1, 2018 the Jack Company acquired all of the outstanding stock of Jill Company. On this date Jack had land with a book value of $1,000,000 and a fair market value of $1,400,000. Jill had land with a book value of $100,000 and a fair market value of $150,000. Neither Jack nor Jill purchased or sold land during 2018. What is the value of land on the December 31, 2018 consolidated balance sheet? Question 15 options: $1,500,000 $1,100,000 $1,150,000 $1,550,000

Question 16 (2 points) Saved The Able Company acquired all of the outstanding stock of Baker Company for an amount less than the fair market value of Baker's net assets. On the consolidated statements Able will show Question 16 options: a 'bargain purchase' as an increase on the income statement. a 'bargain purchase' as part of owner's equity and comprehensive income a liability 'negative goodwill' an intangible asset 'goodwill'

Question 17 (2 points) On January 1, 2001 Antman Company purchased all of the stock of WASP Company. On January 1, 2017 Antman sold a piece of equipment to WASP FOR $60,000. Antman had purchased the equipment on January 1, 2010 for $100,000 and was depreciating the equipment over a ten year life straight-line with no salvage. What worksheet entry is needed to account for this sale on January 1, 2018? Question 17 options: debit equipment 40,000 credit r/e 30,000 credit accumulated depreciation 10,000 none since the consolidated entity still owns the equipment debit equipment 40,000 credit r/e 40,000 debit equipment 40,000 debit r/e 20,000 credit accumulated depreciation 60000

Question 18 (2 points) On January 1st 2013, Potter Company purchased 15% of the voting common stock of Voldomort Company. At this time Potter had no influence on Voldomort. On January 1, 2019, Potter purchased another 25% of Voldomort stock so now Potter has influence over Voldomort. How must Potter account for this change to the equity method? Question 18 options: It must prepare consolidated financial statements for 2019 It must restate the financial statements for years prior to 2019 as if the equity method had been used for those years It must use the equity method for 2019, but make no changes in its financial statements for years prior to 2019 Since the initial investment did NOT achieve influence, Potter must continue to use the original method when accounting for its investment in Voldomort

Question 19 (2 points) When Able Company acquired all of the outstanding stock of Baker Company; Baker Company had a piece of land with a fair market value of $100,000 and a book value of $80,000. In the worksheet Able will Question 19 options: Debit land 20,000 credit gain on land 20,000 Debit loss on land 20,000 credit land 20,000 debit land 20,000 credit investment in Baker 20,000 debit investment in Baker 20,000 credit land 20,000

Question 20 (2 points) On January 1, 2018 Yoda Company purchased 90% of Vadar Company. At this time Vadar had a star destroyer on its books for $400,000 but it had a fair market value of $500,000. This start destroyer has a 10 year life with no salvage. In 2019 the worksheet entry for depreciation would be: Question 20 options: debit depreciation expense 20,000 credit accumulated depreciation 20,000 debit depreciation expense 9000 credit accumulated depreciation 9000 debit depreciation expense 10,000 debit r/e 9000 debit nci 1000 credit accumulated depreciation 20000 debit depreciation expense 10,000 credit accumulated depreciation 10,000