review for test 8 - the following are acceptable methods to...

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the following are acceptable methods to account for a majority-owned investment in subsidiary except The equity method. The initial value method. The partial equity method. The fair-value method. Book value method. Under the equity method of accounting for an investment, The investment account remains at initial value. Dividends received are recorded as revenue. Goodwill is amortized over 20 years. Income reported by the subsidiary increases the investment account. Dividends received increase the investment account. Under the partial equity method of accounting for an investment, The investment account remains at initial value. Dividends received are recorded as revenue. The allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account. Amortization of the excess of fair value allocations over book value is ignored in regard to the investment account. Dividends received increase the investment account. Under the initial value method, when accounting for an investment in a subsidiary, Dividends received by the subsidiary decrease the investment account. The investment account is adjusted to fair value at year-end. Income reported by the subsidiary increases the investment account. The investment account remains at initial value. Dividends received are ignored. According to GAAP regarding amortization of goodwill and other intangible assets, which of the following statements is true? Goodwill recognized in consolidation must be amortized over 20 years.
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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 8 - the following are acceptable methods to...

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