review for test 3 - Jax Company uses the acquisition method...

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Jax Company uses the acquisition method for accounting for its investment in Saxton Company. Jax sells some of its shares of Saxton such that neither control nor significant influence exists. Which of the following statements is true ? The difference between selling price and acquisition value is recorded as a realized gain or loss. The difference between selling price and acquisition value is recorded as an unrealized gain or loss. The difference between selling price and carrying value is recorded as a realized gain or loss. The difference between selling price and carrying value is recorded as an unrealized gain or loss. The difference between selling price and carrying value is recorded as an adjustment to retained earnings. Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2010, and an additional 10% on April 1, 2011. Total annual amortization of $6,000 relates to the first acquisition. George reports the following figures for 2011: Without regard for this investment, Keefe independently earns $300,000 in net income during 2011. All net income is earned evenly throughout the year. What is the controlling interest in consolidated net income for 2011? $373,300. $372,850. $371,500. $376,000. $372,805. McGuire company acquired 90 percent of Hogan Company on January 1, 2010, for $234,000 cash. This amount is reflective of Hogan's total fair value. Hogan's stockholders' equity consisted of common stock of $160,000 and retained earnings of $80,000. An analysis of Hogan's net assets revealed the following: Any excess consideration transferred over fair value is attributable to an unamortized patent with a useful life of 5 years. 130. award: 0 out of 0 points The acquisition value attributable to the noncontrolling interest at January 1, 2010 is: $23,400. $24,000.
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$24,900. $26,000. $20,000. references 131. award: 0 out of 0 points In consolidation at January 1, 2010, what adjustment is necessary for Hogan's Buildings account? $2,000 increase. $2,000 decrease. $1,800 increase. $1,800 decrease. No change. references 132. award: 0 out of 0 points In consolidation at December 31, 2010, what adjustment is necessary for Hogan's Buildings account? $1,620 increase. $1,620 decrease. $1,800 increase. $1,800 decrease. No adjustment is necessary. references 133. award: 0 out of 0 points In consolidation at December 31, 2011, what adjustment is necessary for Hogan's Buildings account?
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$1,440 increase. $1,440 decrease. $1,600 increase. $1,600 decrease. No adjustment is necessary. references 134. award: 0 out of 0 points In consolidation at December 31, 2010, what adjustment is necessary for Hogan's Equipment account? $3,000 increase.
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This note was uploaded on 10/29/2011 for the course ADVANCED A 4110 taught by Professor Fridel during the Spring '11 term at University of Minnesota Duluth.

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review for test 3 - Jax Company uses the acquisition method...

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