ACC 577 OUTLET Great Stories /acc577outlet.com ACC 577 OUTLET Great Stories /acc577outlet.com | Page 5

P Co. purchased term bonds at a premium on the open market.
These bonds represented 20 percent of the outstanding class of
bonds issued at a discount by S Co., P's wholly owned subsidiary.
P intends to hold the bonds until maturity. In a consolidated
balance sheet, the difference between the bond carrying amounts
in the two companies would be
Question 16
In which of the following circumstances of a business
combination, if any, could the recognition of a gain occur at the
time of the combination?
Question 17
Aceco has significant investments in three separate entities. These
investments are: Which of Aceco's investments would be
consolidated with Aceco in its consolidated financial statements?
Question 18
Consolidated financial statements are based on the concept that:
Question 19
On January 1, 2005, Poe Corp. sold a machine for $900,000 to
Saxe Corp., its wholly-owned subsidiary. Poe paid $1,100,000 for
this machine, which had accumulated depreciation of $250,000.
Poe estimated a $100,000 salvage value and depreciated the
machine on the straight-line method over 20 years, a policy which
Saxe continued. In Poe's December 31, 2005, consolidated balance
sheet, this machine should be included in cost and accumulated
depreciation as
Question 20