Question 21 (2 points) The Zombie Company acquired all of the stock of the Vampire Company in 2000. On October 31st 2018 Zombie Company purchased $500,000 of merchandise (inventory) from the Bosco Company. Zombie sold this merchandise to Vampire Company on December 1st 2018 for $900,000. By the end of 2019, Vampire still had not sold any of the merchandise acquired from Zombie. The worksheet entry needed in 2019 would be: Question 21 options: debit sales 900,000 credit cost of goods sold 500,000 credit inventory 400,000 debit inventory 400,000 credit retained earnings 400,000 debit cost of goods sold 500,000 debit inventory 400,000 credit sales 900,000 Debit retained earnings 400,000 credit inventory 400,000

Question 22 (2 points) On January 1st 2000 Homer Company purchased all of the outstanding stock of Simpson Company. On January 1, 2017 Homer Company sold a piece of land to Simpson Company for $40,000. Homer had purchased the land in 2010 for $10,000. What worksheet entry is needed in 2017 connected with the inter-company sale of land? Question 22 options: debit gain 40,000 credit land 40,000 debit gain 30,000 credit land 30,000 debit land 30,000 credit gain 30,000 none since the consolidated entity still owns the land

Question 23 (2 points) On January 1 2019 Hansel Company acquired all of the outstanding stock of Gretal Company for more than the fair market value of Gretal's net assets. Which of the following accounts would NOT appear on the December 2019 consolidated balance sheet? Question 23 options: Common Stock Investment in Gretal Company Equipment Goodwill

Question 24 (2 points) The Colt Company owns 100% (1000 of the 1000 shares) of the Texan Company. The Colt Company reported income of $240,000. The Texan Company has 500 shares of preferred stock and reported income (unconsolidated) of $60,000. The preferred stock can be converted into 500 shares of Texan common stock (1 common share per preferred stock share. What is Colt's earnings per share (EPS) Question 24 options: 30.00 4.00 24.00 28.00

Question 25 (2 points) On January 1, 2018 Greedy Company purchased 30% (3000 of the 10,000 shares of stock) of Nice Company for $300,000 giving it influence over the company. At this time, Nice had no liabilities and one asset; a building with a fair market value of $1,000,000 and a book value of $500,000. This building has a 10 year life and no salvage. In 2018, Nice reported income of $60,000 and paid no dividends. If Nice's stock is selling for $102 per share what will Greedy show on its 2018 income statement due to its investment in Nice? Question 25 options: $6000 since the stock appreciated $2 per share and they own 3000 shares of stock $0 since Nice didn't pay a dividend $3000 $18,000 30% of Nice income

Question 26 (2 points) On January 1, 2000 Cowboy Company acquired all of the stock of Seahawk Company. On January 1, 2010 Seahawk Company issued $500,000 of bonds at a premium. On January 1, 2018 Cowboy Company acquired all of the bonds of Seahawk Company For $503,000 when the carrying value of the debt on Seahawk's books was $511,000. How should this retirement be shown on the 2018 consolidated financial statements? Question 26 options: as a liability of $8000 as a loss of $8000 as a gain of $8000 It is not shown since the subsidiary is the one who originally issued the debt

Question 27 (2 points) The Charger Company owns 90% of the Raven Company. In 2018, the Charger Company had unconsolidated income of $450,000 before taxes and the Raven Company had income of $150,000 before taxes. The corporate tax rate is 20% on the first $100,000 and 40% on income above $100,000. What would be an acceptable income tax expense for Raven Company? Question 27 options: $60,000 $30,000 $55000 $220,000

Question 28 (2 points) On January 1, 2019 Big Company purchased all of the outstanding stock of Small Company for $900,000 which equaled Small's book value. On their December 31, 2019 balance sheet Big showed 'investment in Small' $945,000. During 2019 Small reported income of $60,000 how much did Small pay in dividends in 2019? Question 28 options: 60,000 not enough information to determine 45,000 30,000

Question 29 (2 points) 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 IFRS how much goodwill should be shown on this acquisition? Question 29 options: 200000 0 250,000 800000

Question 30 (2 points) Rudolph Company owns all of the outstanding stock of Santa Company. During the year Santa Company pays a dividend to Rudolph Company. Rudolph did not pay any dividends during the year; therefore on the consolidated financial statements Question 30 options: consolidated income will be decreased by the amount of the dividend Santa's dividend is ignored in the consolidated statements consolidated income will be increased by the amount of Santa's dividend cash flow from financing activities will show an outflow for the dividend