ch4 - ch4 1. For business combinations involving less than...

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ch4 1. For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except : A. identifiable assets acquired, at fair value. B. liabilities assumed, at book value. C. noncontrolling interest, at fair value. D. goodwill or a gain from bargain purchase. E. none of these choices is correct. When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. 2. What amount should have been reported for the land in a consolidated balance sheet at the acquisition date? A. $52,500. B. $70,000. C. $75,000. D. $92,500. E. $100,000. 3. What is the total amount of excess land allocation at the acquisition date? A. $0. B. $30,000. C. $22,500. D. $25,000. E. $17,500. 4. What is the amount of excess land allocation attributed to the controlling interest at the acquisition date? A. $0. B. $30,000. C. $22,500. D. $25,000. E. $17,500. 5. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date? A. $0. B. $30,000. C. $22,500. D. $7,500. E. $17,500.
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6. What amount should have been reported for the land in a consolidated balance sheet, assuming the investment was obtained prior to January 1, 2009 and the purchase method of accounting for business combinations was used? A. $70,000. B. $75,000. C. $85,000. D. $92,500. E. $100,000. Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The noncontrolling interest shares of Float Corp. are not actively traded. 7. What is the total amount of goodwill recognized at the date of acquisition? A. $150,000. B. $250,000. C. $0. D. $120,000. E. $170,000. 8. What amount of goodwill should be attributed to Perch at the date of acquisition? A. $150,000. B. $250,000. C. $0. D. $120,000. E. $170,000. 9. What amount of goodwill should be attributed to the noncontrolling interest at the date of acquisition? A. $0. B. $20,000. C. $30,000. D. $100,000. E. $120,000. 10. What is the dollar amount of noncontrolling interest that should appear in a consolidated balance sheet prepared at the date of acquisition? A. $350,000. B. $300,000. C. $400,000. D. $370,000. E. $0.
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11. What is the dollar amount of Float Corp.'s net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition? A. $1,600,000. B. $1,480,000. C. $1,200,000. D. $1,780,000. E. $1,850,000. 12. What is the dollar amount of fair value over book value differences attributed to Perch at the date of acquisition? A. $120,000. B. $150,000. C. $280,000.
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ch4 - ch4 1. For business combinations involving less than...

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