AMIS624X2H - LastName |_|_|_|_|_|_|_|_|_|_|_|_| FirstName

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Last Name | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | First Name | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | _ | Accounting & MIS 624 Exam II Autumn 2009 Instructions: 1. Read each question carefully and answer fully.   Unless otherwise  specified,   subsidiaries   do   not   use   the   push-down   method   of  accounting.  All consolidations are handled as purchases (not pooling)  unless indicated.  All firms use a calendar year.  Use post-December  2008 GAAP unless otherwise told to do so.    Round all answers to  nearest whole dollar. 2. Problems not supported by relevant and readable computations are  subject to point loss.  Where appropriate, terms like “net income,” “net  loss,” etc. must be included with number answers. 3. Budget your time carefully.  It is generally better to finish half of each  problem than to complete all of half the problems.   Students who  continue to work on exams after instructed to stop will receive a zero  on this exam. 4. It is the student's responsibility to verify that all the listed problems  and   pages   are   contained   is   this   booklet.     Unanswered   questions  receive zero points regardless of reason. Problem Pages Approximate Points Approximate Time I 2 - 5 60 32 – 40 minutes II 6 - 8 40 22 – 27 minutes III 9 - 10 32 18 – 22 minutes IV 11 - 12 28 15 – 19 minutes Total 160 87 - 108 minutes
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Page 2 of 13 P ROBLEM  I Presented   below   is   the   partially   completed   worksheet   for   Parent   and   Sub  immediately after Parent acquired 80% of Sub.  The current and book value of all of Sub’s  recorded assets were the same except as follows.  Inventory (FIFO) has a fair value of $460.  Property, Plant & Equipment (16 years remaining) has a fair value of $1,420.   Land  (indefinite life) has a fair value of $600.  Long-term Liabilities (6 years remaining) has a  $740 current value.  The Sub was determined to have previously unrecorded Trademarks  worth   $300.     The   fair  market   value   of   the   non-controlling   interest   was   $726   at  the  acquisition date. Part A.  Required:  Complete the worksheet.  {15 points} 1 Jan 20x1 Parent Sub Adjustments Consolidated Cash & Receivables 1,459 1,180 Inventory 1,000 500 Property, P, E, net 900 1,100 Land 1,200 650 Investment in S 3,101 Current Liabilities 700 180 Long-term Liabilities 450 800 Common Stock 10 50 Ret. Earnings, end 6,500 2,400 7,660 3,430
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Page 3 of 13 P ROBLEM  I  (continued) Part B.   Below is the worksheet at the end of the first year under the complete equity 
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AMIS624X2H - LastName |_|_|_|_|_|_|_|_|_|_|_|_| FirstName

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