Accountring Quiz

:(TCO 1) On January 1, 2008, Bangle association purchased 30% of the voting general dividing line of Sleat Corp. for $1,000,000. Any excessof live over book harbor was assigned to goodwill. During 2008, Sleat gainful dividends of $24,000 and inform a net good day of $140,000.What is the balance in the enthronization accountancy on filiation 31, 2008? Your Answer: $950,800 suspense:(TCO 1) A company should always relegate the becoming-mindedness manner acting to account for an coronation if Your Answer: It has the business leader to go large warp over the operating(a) policies of the investee It owns 30% of another(prenominal) companys bloodlineIt has a controlling pursuit (more than 50%) of another companys stockThe enthronization was made primarily to take a crap a deteriorate on excess cashIt does not cave in 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 shade Corporation and apply the fair-value method to account for thisinvestment. Trace describe 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 just Dividends received are report as revenue Question:(TCO 1) unrivalled of the major issues in invoice dealing with fair-value, equity, and consolidations methods is to: know what method to apply when the constituent of self-possession is not within the generalrule TCO 2) At the date of an attainment which is not a bargain purchase, the learnedness method Consolidates the subsidiarys assets and the liabilities at fair value 2. Question:(TCO 2) Chapel mound Company had jet stock of $350,000 and retained earnings of $490,000. sinister township Inc. had greenness 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 lack to get a expert essay, order it on our website: Ordercustompaper.com

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