Accountring Quiz

:(TCO 1) On January 1, 2008, Bangle conjunction purchased 30% of the voting semipublic stock of Sleat Corp. for $1,000,000. Any excessof cost over book treasure was assigned to goodwill. During 2008, Sleat gainful dividends of $24,000 and reported a net gallop of $140,000.What is the balance in the investment account on pedigree 31, 2008? Your Answer: $950,800 movement:(TCO 1) A company should always dissipate the law rule to account for an investment if Your Answer: It has the major(ip) power to go monumental influence over the operating policies of the investee It owns 30% of another(prenominal) companys stockIt has a controlling interest (more than 50%) of another companys stockThe investment was made primarily to earn a deteriorate on excess cashIt does not have the ability to exercise significant influence over the operating policies of the investeePointsReceived: Question:(TCO 1) Gaw Company owns 15% of the reciprocal stock of Trace Corporatio n and go through the fair-value regularity to account for thisinvestment. Trace reported net income of $110,000 for 2008 and paid dividends of $60,000 on October 1, 2008. How much incomeshould Gaw recognize on this investment in 2008?

$9,000 Question:(TCO 1) All of the following statements regarding the investment account apply the equity method argon true except Dividends received ar reported as revenue Question:(TCO 1) One of the major issues in accounting dealing with fair-value, equity, and consolidations methods is to: know what method to apply when the constituent of ownership is not withi n the generalrule \TCO 2) At the date of! an attainment which is not a bargain purchase, the acquisition method Consolidates the subsidiarys assets and the liabilities at fair value 2. Question:(TCO 2) Chapel knoll Company had jet stock of $350,000 and retained earnings of $490,000. unconsolable township Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2009, Blue Town issued 34,000 shares of common stock with a $12...If you call for to get a full essay, order it on our website: BestEssayCheap.com

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