ACC 577 help A Guide to career/uophelp.com ACC 577 help A Guide to career/uophelp.com | Page 52

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
investment in Subco account was $552,000. During 2009 Subco reported
the following: In preparing its 2009 fiscal year consolidated statements,
which one of the following is the total amount of equity revenue that
Parco will have to reverse for 2009 as a result of it ownership of Subco?
Question 12