The cost of debt investments includes each of the following except

a. commissions

b. brokerage fees

c. accrued interest

d. the price paid

The consolidated worksheet shows Excess of cost over Book value of Subsidiary of $210,000. Management of the parent company determines that the market values for subsidiary company plant assets are $90,000 higher than book values. In the consolidated balance sheet, goodwill will be reported at

a. $210,000

b. $120,000

c. $0

d. $90,000

At December 31, 2013, Gammon Inc has these data on its security investments:

Security Cost Fair Value 12/31/13

Trading $140,000 $192,000

Non-Trading $137,000 $125,000

If the non-trading securities are held as long-term investments, which of the following will be recorded to adjust the securities to fair value?

a. Fair value adjustment trading 52,000

Unrealized gain income 52,000

Unrealized gain or loss equity 12,000

Fair value adjustment non trading 12,000

b. Unrealized gain income 52,000

Fair value adjustment trading 52,000

Fair value adjustment non trading 12,000

Unrealized gain or loss equity 12,000

c. Un realized loss income 12,000

Securities 40,000

Unrealized gain income 52,000

d. Securities 40,000

Unrealized gain income 40,000