ACC 577 OUTLET Learn by Doing/acc577outlet.com ACC 577 OUTLET Learn by Doing/acc577outlet.com | Page 61

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