On January 1, 2013, Deuce Inc. acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and
categorized the investment as an available-for-sale security. Wiz earned net income of $96,000 in 2013 and
paid dividends of $36,000. On January 1, 2014, Deu
1 ) On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of
Renn Corp. The carrying amounts for Renns assets and liabilities on June 1 follow:
1) A company acquires a subsidiary and will prepare consolidated financial statements for external
reporting purposes. For internal reporting purposes, the company has decided to apply the equity
method. Why might the company have made this decision?
1) Sometimes also known as transaction taxes, Federal gift and estate taxes are excise taxes.
2) In which of the following situations has a taxable gift occurred?
a. None of the above.
b. Before their marriage, Eva