============================================== ACC 577 Week 4 Quiz ( 100 % Correct Answers ) FOR MORE CLASSES VISIT www . acc577outlet . com
at the time of sale . Collections received for service contracts should be recorded as an increase in a
Question 19
On January 1 , 2005 , Mega Corp . acquired 10 % of the outstanding voting stock of Penny , Inc . On January 2 , 2006 , Mega gained the ability to exercise significant influence over financial and operating control of Penny by acquiring an additional 20 % of Penny ' s outstanding stock . The two purchases were made at prices proportionate to the value assigned to Penny ' s net assets , which equaled their carrying amounts . For the years ended December 31 , 2005 and 2006 , Penny reported the following : In 2006 , what amounts should Mega report as current year investment income and as an adjustment , before income taxes , to 2005 investment income ?
Question 20
In November and December 2005 , Dorr Co ., a newly organized magazine publisher , received $ 72,000 for 1,000 three-year subscriptions at $ 24 per year , starting with the January 2006 issue . Dorr elected to include the entire $ 72,000 in its 2005 income tax return . What amount should Dorr report in its 2005 income statement for subscriptions revenue ?
============================================== ACC 577 Week 4 Quiz ( 100 % Correct Answers ) FOR MORE CLASSES VISIT www . acc577outlet . com