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Which of the following is not a method of accounting

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125.Which of the following is not a method of accounting for stock investments?a.Cost method.b.Stock method.c.Consolidated financial statements.d.Equity method.Ans: B, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Investment DecisionsH-29
126.In order to use the cost method of accounting for stock investments, how much stockmust the investor own?
127.Assume that Oslo Corp. acquires 30% of Celdon Corp. for $360,000 on January 1, 2022.If Celdon declares and pays $120,000 in total dividends on February 14th, the journalentry would include a credit to
128.Assume that Oslo Corp. acquires 30% of Celdon Corp. for $360,000 on January 1, 2022.The journal entry on Oslo’s books assuming Celdon’s net income for 2022 was $600,000would include a debit to
FOR INSTRUCTOR USE ONLY
Test Bank for Financial Accounting: Tools for Business Decision Making, Eighth Edition129.Mega Company receives net proceeds of $73,000 on the sale of stock investments thatcost $79,000. This transaction will result in reporting in the income statement aa.loss of $6,000 under “Other expenses and losses.”b.loss of $6,000 under “Operating expenses.”c.gain of $6,000 under “Other revenues and gains.”d.gain of $6,000 under “Operating revenues.”Ans: A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:

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