Sayon Co. issues 200,000 shares of USD5 par value common stock to acquire Trask Co. in an acquisition-business combination. The market value of Sayon's common stock is USD12. Legal and consulting fees incurred in relationship to the purchase are USD110,000. Registration and issuance costs for the common stock are USD35,000. What should be recorded in Sayon's additional paid-in capital account for this business combination?

1 .Penn, Inc., a manufacturing company, owns 75% of the common stock of Sell, Inc., an investment company. Sell owns 60% of the common stock of Vane, Inc., an insurance company. In Penn's consolidated financial statements, should consolidation accounting or equity method accounting be used for Sell and Vane?

A Consolidation used for both Sell and Vane. B Equity method used for Sell and consolidation used for Vane. C Equity method used for both Sell and Vane. D Consolidation used for Sell and equity method used for Vane.

题型: 单选题 提问时间: 2021-08-24

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2 .On January 2 of the current year, Peace Co. paid USD310,000 to purchase 75% of the voting shares of Surge Co. Peace reported retained earnings of USD80,000, and Surge reported contributed capital of USD300,000 and retained earnings of USD100,000. The purchase differential was attributed to depreciable assets with a remaining useful life of 10 years. Peace used the equity method in accounting for its investment in Surge. Surge reported net income of USD20,000 and paid dividends of USD8,000 during the current year. Peace reported income, exclusive of its income from Surge, of USD30,000 and paid dividends of USD15,000 during the current year. What amount will Peace report as dividends declared and paid in its current year's consolidated statement of retained earnings?

A USD8,000 B USD23,000 C USD21,000 D USD15,000

题型: 单选题 提问时间: 2021-08-24

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3 .On January 1, Year 1, Dallas, Inc. acquired 80% of Style, Inc.'s outstanding common stock for USD120,000. On that date, the carrying amounts of Style's assets and liabilities approximated their fair values. During Year 1, Style paid USD5,000 cash dividends to its stockholders. Summarized balance sheet information for the two companies follows:DallasStyle12/31/Year 112/31/Year 11/1/Year 1Investment in Style (equity method)USD132,000Other assets138,000USD115,000USD100,000USD270,000USD115,000USD100,000Common stockUSD50,000USD20,000USD20,000Additional paid-in capital80,25044,00044,000Retained earnings139,75051,00036,000USD270,000USD115,000USD100,000What amount should Dallas report as its share of the earnings from subsidiary, in its Year 1 income statement?

A USD20,000 B USD12,000 C USD16,000 D USD15,000

题型: 单选题 提问时间: 2021-08-24

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4 .On January 1, Year 1, Dallas, Inc. acquired 80% of Style, Inc.'s outstanding common stock for USD120,000. On that date, the carrying amounts of Style's assets and liabilities approximated their fair values. During Year 1, Style paid USD5,000 cash dividends to its stockholders. Summarized balance sheet information for the two companies follows:DallasStyle12/31/Year 112/31/Year 11/1/Year 1Investment in Style (equity method)USD132,000Other assets138,000USD115,000USD100,000USD270,000USD115,000USD100,000Common stockUSD50,000USD20,000USD20,000Additional paid-in capital80,25044,00044,000Retained earnings139,75051,00036,000USD270,000USD115,000USD100,000What amount of total stockholders' equity should be reported in Dallas' December 31, Year 1, consolidated balance sheet?

A USD286,000 B USD303,000 C USD270,000 D USD385,000

题型: 单选题 提问时间: 2021-08-24

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5 .The separate condensed balance sheets and income statements of Purl Corp. and its wholly-owned subsidiary, Scott Corp., are as follows:Balance SheetsDecember 31,Year 1PurlScottAssetsCurrent assetsCashUSDUSD80,000USDUSD60,000Accounts receivable (net)140,00025,000Inventories90,00050,000Total current assets310,000135,000Property, plant, and equipment (net)625,000280,000Investment in Scott (equity method)400,000?Total assetsUSD1,335,000USD415,000Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payableUSD160,000USD95,000Accrued liabilities110,00030,000Total current liabilities270,000125,000Stockholders' equityCommon stock (USD10 par)300,00050,000Additional paid-in capital?10,000Retained earnings765,000230,000Total stockholders' equity1,065,000290,000Total liabilities and stockholders' equityUSD1,335,000USD415,000Income StatementsYear Ended December 31, Year 1PurlScottSalesUSD2,000,000USD750,000Cost of goods sold1,540,000500,000Gross margin460,000250,000Operating expenses260,000150,000Operating income200,000100,000Equity in earnings of Scott70,000?Income before income taxes270,000100,000Provision for income taxes60,00030,000Net incomeUSD210,000USD70,000Additional information:1.On January 1, Year 1, Purl purchased for USD360,000 all of Scott's USD10 par, voting common stock.2.On January 1, Year 1, the fair value of Scott's assets and liabilities equaled their carrying amount of USD395,000 and USD145,000, respectively, except that the fair values of certain items identifiable in Scott's inventory were USD10,000 more than their carrying amounts. These items were still on hand at December 31, Year 1.3.During Year 1, Purl and Scott paid cash dividends of USD100,000 and USD30,000, respectively. For tax purposes, Purl receives the 100% exclusion for dividends received from Scott.4.There were no intercompany transactions, except for Purl's receipt of dividends from Scott and Purl's recording of its share of Scott's earnings.5.Both Purl and Scott paid income taxes at the rate of 30%.6.During Year 1, there was no impairment of goodwill.In the December 31, Year 1 consolidated financial statements of Purl and its subsidiary, total retained earnings should be:

A USD985,000 B USD765,000 C USD825,000 D USD795,000

题型: 单选题 提问时间: 2021-08-24

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7 .Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, Year 1, and for the year then ended is as follows:PareShelConsolidatedBalance sheet accountsAccounts receivableUSDUSD52,000USDUSD38,000USDUSD78,000Inventory60,00050,000104,000Income statement accountsRevenues400,000280,000616,000Cost of goods sold300,000220,000462,000Gross profitUSD100,000USD60,000USD154,000Additional information: During Year 1, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales.What was the amount of intercompany sales from Pare to Shel during Year 1?

A USD58,000 B USD 6,000 C USD12,000 D USD64,000

题型: 单选题 提问时间: 2021-08-24

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8 .Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, Year 1, and for the year then ended is as follows:PareShelConsolidatedBalance sheet accountsAccounts receivableUSDUSD52,000USDUSD38,000USDUSD78,000Inventory60,00050,000104,000Income statement accountsRevenues400,000280,000616,000Cost of goods sold300,000220,000462,000Gross profitUSD100,000USD60,000USD154,000Additional information: During Year 1, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales.At December 31, Year 1, what was the amount of Shel's payable to Pare for intercompany sales?

A USD6,000 B USD58,000 C USD64,000 D USD12,000

题型: 单选题 提问时间: 2021-08-24

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9 .Nolan owns 100% of the capital stock of both Twill Corp. and Webb Corp. Twill purchases merchandise inventory from Webb at 140% of Webb's cost. During Year 1, merchandise that cost Webb USD40,000 was sold to Twill. Twill sold all of this merchandise to unrelated customers for USD81,200 during Year 1. In preparing combined financial statements for Year 1, Nolan's bookkeeper disregarded the common ownership of Twill and Webb.What amount should be eliminated from cost of goods sold in the combined income statement for Year 1?

A USD16,000 B USD56,000 C USD40,000 D USD24,000

题型: 单选题 提问时间: 2021-08-24

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10 .Selected data for two subsidiaries of Dunn Corp. taken from December 31, Year 1 pre-closing trial balances are as follows:Banks Co.DebitLamm Co.CreditShipments to BanksUSD -USD150,000Shipments from Lamm200,000-Intercompany inventory profit on total shipments-50,000Additional data relating to the December 31, Year 1 inventory are as follows: Inventory acquired from outside parties USD175,000 USD250,000 Inventory acquired from Lamm 60,000 - At December 31, Year 1, the inventory reported on the combined balance sheet of the two subsidiaries should be:

A USD485,000 B USD470,000 C USD425,000 D USD435,000

题型: 单选题 提问时间: 2021-08-24

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