Chapter 1 Quiz - Chapter 1 Quiz MY ANSWERS 1 B 2 C 3 D 4 D...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 1 Quiz: MY ANSWERS: 1. B 2. C 3. D 4. D 5. A 6. C 7. E 8. A 9. A 10. C 11. C 12. D 13. E 14. C 15. D Results Reporter Out of 15 questions, you answered 14 correctly with a final grade of 93% 14 correct (93%) 1 incorrect (7%) 0 unanswered (0%) Your Results: The correct answer for each question is indicated by a . 1 CORRECT Item is based on the following information: On January 1 of the current year, Barger Company buys 150,000 shares of Booker, Inc.'s common stock for $1,200,000, the book value of the shares. This purchase gave Barger 25% ownership in Booker and the ability to significantly influence operating and financing decisions. At the time of the acquisition, Booker had a total book value of $4,800,000. During the current year, Booker reported net income of $700,000 and paid a $.85 per share dividend. Barger elects to use the equity method of accounting. What is the balance in the Investment in Booker account in the records of Barger Company at December 31, of the current year? A) $1,200,000 B) $1,247,500 C) $1,772,500 D) $1,900,000 E) $1,152,500 Feedback: 2 CORRECT Item is based on the following information: On January 1 of the current year, Barger Company buys 150,000 shares of Booker, Inc.'s common stock for $1,200,000, the book value of the shares. This purchase gave Barger 25% ownership in Booker and the ability to significantly influence operating and financing decisions. At the time of the acquisition, Booker had a total book value of $4,800,000. During the current year, Booker reported net income of $700,000 and paid a $.85 per share dividend. Using the equity method of accounting, what is the journal entry to record the receipt of dividends during the current year? A) B) C) D) E) Feedback: Dividend received (150,000 x $.85) is equal to $127,500 3 CORRECT Item is based on the following information: On January 1 of the current year, Barger Company buys 150,000 shares of Booker, Inc.'s common stock for $1,200,000, the book value of the shares....
View Full Document

{[ snackBarMessage ]}

Page1 / 7

Chapter 1 Quiz - Chapter 1 Quiz MY ANSWERS 1 B 2 C 3 D 4 D...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online