Chap004 - Chapter 04 - Consolidated Financial Statements...

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Chapter 04 - Consolidated Financial Statements and Outside Ownership Chapter 04 Consolidated Financial Statements and Outside Ownership Multiple Choice Questions 1. According to SFAS 160, Non-controlling Interests and Consolidated Financial Statements, a non-controlling interest is most likely to be shown as part of equity under the A. Partial equity concept B. Proportionate consolidation concept C. Economic unit concept D. Parent company concept E. Proprietary concept Difficulty: Easy 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 on a consolidated balance sheet, according to SFAS 141(R), assuming the economic unit concept was used? A. $70,000 B. $75,000 C. $85,000 D. $92,500 E. $100,000 Difficulty: Easy 4-1
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Chapter 04 - Consolidated Financial Statements and Outside Ownership 3. What amount of excess land allocation would be included for the calculation of non- controlling interest, according to SFAS 141(R)? A. $0 B. $7,500 C. $17,500 D. $25,000 E. $70,000 Difficulty: Easy 4. What amount should have been reported for the land on a consolidated balance sheet, assuming the investment was obtained prior to SFAS 141(R) and the parent company concept was used? A. $70,000 B. $75,000 C. $85,000 D. $92,500 E. $100,000 Difficulty: Medium 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 non-controlling interest shares of Float Corp. are not actively traded. 5. What is the total amount of goodwill recognized according to the economic unit concept per SFAS 141 (R)? A. $150,000 B. $250,000 C. $0 D. $120,000 E. $170,000 Difficulty: Medium 4-2
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Chapter 04 - Consolidated Financial Statements and Outside Ownership 6. What amount of goodwill should be attributed to Perch according to the economic unit concept per SFAS 141(R)? A. $150,000 B. $250,000 C. $0 D. $120,000 E. $170,000 Difficulty: Medium 7. What amount of goodwill should be attributed to the non-controlling interest according to the economic unit concept per SFAS 141(R)? A. $0 B. $20,000 C. $30,000 D. $100,000 E. $120,000 Difficulty: Medium 8. What is the dollar amount of non-controlling interest which should appear on a balance sheet prepared immediately after consolidation according to the economic unit concept per SFAS 141(R)? A. $350,000 B. $300,000 C. $400,000 D. $370,000 E. $0 Difficulty: Medium 4-3
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Chapter 04 - Consolidated Financial Statements and Outside Ownership 9. What is the dollar amount of Float Corp.'s net assets that would be represented on a balance sheet prepared immediately after consolidation according to the economic unit concept per SFAS 141(R)? A.
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Chap004 - Chapter 04 - Consolidated Financial Statements...

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