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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?
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ACC 577 Week 4 Quiz (100 % Correct Answers)

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Week 4 Quiz
All Questions Details given below (Please Check)
Question 1
Treasury stock was acquired for cash at a price in excess of its
original issue price. The treasury stock was subsequently