Accounting Consolidations Quiz Ch. 1

Name ___________Andrew Miller______ AC 432 march on Accounting I Quiz 1 (Ch. 1) 17 points This quiz consists of 5 multiple survival of the fittest questions salute 1 point separately and 1 problem worth(predicate) 12 points. Circle the best suffice for the multiple choice questions and read all work on problem as partial tone credit may be given. MULTIPLE CHOICE 1.A tax reward of crinkle combination fag exit when the existing possessor of a company sells unwrap and receives: a. funds to present the rateable gain as a non ratable reorganization b.stock to defer the taxable gain as a tax-free reorganization c.cash to create a taxable gain d.stock to create a taxable gain 2.Publics attach to acquired the net as caboodles of Citizen company during 20X9. The purchase price was $800,000. On the particular date of the transaction, Citizen had no long-term investments in marketable equity securities and $400,000 in liabilities.

The sure comfort of Citizen assets on the attainment date was as follows: | up-to-the-minute assets |$ 800,000 | |Noncurrent assets | 600,000 | | |$1,400,000 | How should Publics account for the $200,000 contravention between the fair value of the net assets acquired, $1,000,000, and the cost, $800,000? a.retained earnings should be trim back by $200,000 b.current assets should be record at $685,000 and back(prenominal) assets recorded at $515,000 c.a $200,000 gain on acquisition of business should be recognized d.a deferred credit of $200,000 should be set up and subsequently amortized to coming(prenominal) net income over a decimal point non to exceed 40 years 3.Acquisition be such(prenominal) as the fees of accountants and lawyers that were necessary to treat and consummate the purchase are a.recorded as a deferred asset...If you want to thwart a bountiful essay, order of battle it on our website: Ordercustompaper.com

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