Question 16 5 pts

(TCO 2) In a business combination accounted for as a purchase, the appraised values of the identifiable assets acquired exceeded the acquisition price. How should the excess appraised value be reported?

As negative goodwill

As a reduction of the values assigned to noncurrent assets and an extraordinary gain for any unallocated portion

As a gain, after adjusting the balance sheet, including identifiable intangible assets, to fair value

As positive goodwill

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Question 17 5 pts

(TCO 2) On November 30, 20x1, Penny Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Saz Co. At November 30, 20x1, Saz's balance sheet showed a carrying amount of net assets of $3,000,000. At that date, the fair value of Saz's property, plant, and equipment exceeded its carrying amount by $400,000. In its November 30, 20x1, consolidated balance sheet, which amount should Penny report as goodwill under U.S. GAAP?

$750,000

$400,000

$350,000

$0

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Question 18 5 pts

(TCO 3) On January 2, Year 1, Pool Co. acquired 75% of Kale Co.'s outstanding common stock. The balance sheet data at December 31, 20x1, show retained earnings of $200,000 per company. During 20x1, Pool and Kale paid cash dividends of $25,000 and $5,000, respectively, to their shareholders. There were no other intercompany transactions. In its December 31, 20x1, consolidated statement of retained earnings, which amount should Pool report as dividends paid?

$5,000

$25,000

$26,250

$30,000

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Question 19 5 pts

(TCO 4) When translating foreign currency financial statements into the reporting currency, which of the following items would not be translated using current (year-end) rates?

Accounts receivable

Fixed assets

Notes payable

Common stock

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Question 20 5 pts

(TCO 5) Kahn and Penny are partners with capital balances of $60,000 and $20,000, respectively. Profits and losses are divided in the ratio of 60:40. Kahn and Penny decided to form a new partnership with George, who invested land valued at $15,000 for a 20% capital interest in the new partnership. George's cost of the land was $12,000. The partnership elected to use the bonus method to record the admission of George into the partnership. George's capital account should be credited for

$12,000.

$15,000.

$16,000.

$19,000. answr abcd for all questions, recieve thumbsu p