{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Practice Exam I_Solutions

Practice Exam I_Solutions - PRACTICE EXAM I ADVANCED...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
PRACTICE EXAM I ADVANCED ACCOUNTING SPRING 2007 MULTIPLE CHOICE 1. Muttonbird Inc. has 90% ownership of Beach Co., but would not consolidate Beach under FASB 94 if: a. Beach is in a regulated industry. X b. Muttonbird expects to sell Beach within a year. c. Muttonbird uses the equity method for Beach. d. Beach is in a foreign country and records its books in a foreign currency. 2. Which one of the following will result in an increase to consolidated Retained Earnings? X 3. Scrubwren Corporation acquired a 100% interest in Heath Company for $1,780,000 when Heath had no liabilities. The book values and fair values of Heath's assets were: Book Value Fair Value Current assets $ 400,000 $ 700,000 Equipment 200,000 400,000 Land & buildings 600,000 800,000 Total assets $1,200,000 $1,900,000 Immediately following the acquisition, equipment will be included on the consolidated balance sheet at: X
Image of page 1

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

View Full Document Right Arrow Icon
4. If Griffon Inc. has a 30% ownership in Duck Corporation, Griffon should use the equity method under which of the following circumstances: X 5. The investment in equity investee account would not be reported on a consolidated balance sheet if: a. the cost method is used. b. the investee has extraordinary or other “below the line” items. c. the investor company is amortizing cost-book value differentials. X d. the investor company owns greater than 50% of the voting stock of the investee. 6. In a period in which an impairment loss occurs, SFAS No. 142 requires each of the following note disclosures except X
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern