Multiple Choice- Chapter 1

Multiple Choice- Chapter 1 - Answers to Multiple Choice 1....

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Answers to Multiple Choice 1. D 2. B 3. C 4. A Acquisition price . ............................................................................ $1,600,000 Equity income ($560,000 × 40%) . ................................................... 224,000 Dividends (50,000 shares × $2.00). ................................................. (100,000 ) Investment in Harrison Corporation as of December 31. ............. $1,724,000 5. A Acquisition price . ...................................................... $700,000 Income accruals: 2008—$170,000 × 20%. ................ 34,000 2009—$210,000 × 20% . ............... 42,000 Amortization (below): 2008. ...................................... (10,000) Amortization: 2009 . ................................................... (10,000) Dividends: 2008—$70,000 × 20% . ............................ (14,000) 2009—$70,000 × 20%. ............................. (14,000 ) Investment in Bremm, December 31, 2009. ........ $728,000 Acquisition price . ...................................................... $700,000 Bremm’s net assets acquired ($3,000,000 × 20%) . . (600,000 ) Patent . ........................................................................ $100,000 Annual amortization (10 year life) . ..........................
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This note was uploaded on 10/02/2009 for the course ACCT 401 taught by Professor Ross,m during the Spring '08 term at Western Kentucky University.

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Multiple Choice- Chapter 1 - Answers to Multiple Choice 1....

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