Which one of the following levels of voting ownership is normally assumed to convey significant influence over an investee ?
Question 8
In recording its acquisition of Lambda , Inc ., Omega , Inc . properly recognized a contingent consideration liability of $ 28,000 associated with a possible payment based on a target amount of postcombination cash flow from operations . Shortly after the combination , but during the measurement period , the national economy experienced a significant downturn which made it unlikely that the target amount would be reached . As a consequence , at the end of Omega ' s fiscal period , the liability was properly revalued to a fair value of $ 9,000 . Which one of the following is the amount of gain or loss that will be recognized in income as a result of the reevaluation of the contingent liability ?
Question 9
Beni Corp . purchased 100 % of Carr Corp .' s outstanding capital stock for $ 430,000 cash . Immediately before the purchase , the balance sheets of both corporations reported the following : On the date of purchase , the fair value of Carr ' s assets was $ 50,000 more than the aggregate carrying amounts . In the consolidated balance sheet prepared immediately after the purchase , the consolidated stockholders ' equity should amount to :
Question 10
Which one of the following methods , if any , may a parent use on its books to carry an investment in a subsidiary that it will consolidate ?
Question 11
Parco owns 100 % of its subsidiary , Subco , which it acquired at book value . It carries its investment in Subco on its books using the equity method of accounting . At the beginning of its 2009 fiscal year , the