Quiz 2 Ch 3(2)

Quiz 2 Ch 3(2) - Quiz Ch 3 1. Which one of the following...

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Quiz Ch 3 1. Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the combination? A. Goodwill. B. Equipment. C. Investment in Subsidiary. D. Common Stock. E. Additional Paid-In Capital. 2. Jansen Inc. acquired all of the outstanding common stock of Merriam Co. on January 1, 2010, for $257,000. Annual amortization of $19,000 resulted from this acquisition. Jansen reported net income of $70,000 in 2010 and $50,000 in 2011 and paid $22,000 in dividends each year. Merriam reported net income of $40,000 in 2010 and $47,000 in 2011 and paid $10,000 in dividends each year. What is the Investment in Merriam Co . balance on Jansen's books as of December 31, 2011, if the equity method has been applied? A. $286,000. B. $295,000. C. $276,000. D. $344,000. E. $324,000. 257 – 19 * 2 + 40 + 47 – 10*2 = 286,000 3. Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2010. Janex's reported earnings for 2010 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was $3,180,000, and it paid dividends of
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This note was uploaded on 02/22/2012 for the course ACCT 501 taught by Professor Ma during the Spring '11 term at South Carolina.

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Quiz 2 Ch 3(2) - Quiz Ch 3 1. Which one of the following...

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