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RESUBMITTED: 1.1 When a parent uses the initial v...

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RESUBMITTED: 1.1 When a parent uses the initial value method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is true before making adjustments on the consolidated worksheet? a)Parent company net income equals consolidated net income. b)Parent company retained earnings equals consolidated retained earnings. c)Parent company total assets equals consolidated total assets. d)Parent company dividends equal consolidated dividends. e)Goodwill will not be recognized on the parent's books. 1.22 When a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet? a)Parent company net income equals consolidated net income. b)Parent company retained earnings equals consolidated retained earnings. c)Parent company total assets equals consolidated total assets. d)Parent company dividends equal consolidated dividends. e)Goodwill needs to be recognized on the parent's books. 1.3 When a parent uses the partial equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet? a)Parent company net income will equal controlling interest in consolidated net income when initial value, book value, and fair value of the investment are equal. b)Parent company net income will exceed controlling interest in consolidated net income when fair value of depreciable assets acquired exceeds book value of depreciable assets. c)Parent company net income will be less than controlling interest in consolidated net income when fair value of net assets acquired exceeds book value of net assets acquired. d)Goodwill will be recognized if acquisition value exceeds fair value of net assets acquired. e)Subsidiary net assets are valued at their book values before consolidating entries are made.,Is it possible to have the answers by 11PM tonight (your time?)Thank you sooo very much - thought I had answered these but I am hitting a wall! If not, let me know, and thanks!

 

Paper#6385 | Written in 18-Jul-2015

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