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If a parent company has two wholly owned subsidiaries

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135.If a parent company has two wholly owned subsidiaries, how many legal and economicentities are there from the viewpoint of the shareholders of the parent company?LegalEconomica.33b.12c.31d.21Ans: C, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting
136.When a company owns more than 50% of the common stock of another companyReporting
137.In recognizing a decline in the fair value of short-term stock investments, an UnrealizedLoss account is debited becauseFSA
138.Which of the following statements is true about investments classified as tradingsecurities?Investment Decisions
139.The Fair Value Adjustment accounta.is set up for each security in the company's portfolio.b.relates to the entire portfolio of securities held by the company.c.is closed at the end of each accounting period.d.appears on the income statement as Other Expenses and Losses.Ans: B, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Investment DecisionsFOR INSTRUCTOR USE ONLY

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