Multiple Choice- Chapter 3

Multiple Choice- Chapter 3 -...

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Chapter 3- Answers to Multiple Choice 1. A 2. B 3. A 4. D Willkom equipment book value—12/31/11 . ......................... $210,000 Szabo book value—12/31/11 . ............................................... 140,000 Original purchase price allocation to Szabo's equipment ($300,000 – $200,000). ........................................................... 100,000 Amortization of allocation ($100,000/10 years for 3 years).
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Unformatted text preview: ...................................... (30,000 ) Consolidated equipment . ..................................................... $420,000 5. A 6. B 7. D 8. B 9. A and B are correct 10. C 11. C $60,000 allocation to equipment is "pushed-down" to subsidiary and increases balance from $330,000 to $390,000. Consolidated balance is $420,000 plus $390,000....
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