Accounting Consolidations Quiz Ch. 1

Name ___________Andrew Miller______ AC 432 Advanced Accounting I try out 1 (Ch. 1) 17 points This quiz consists of 5 multiple excerption of the fittest questions cost 1 point each and 1 fuss worth(predicate) 12 points. Circle the best answer for the multiple election questions and show all work on problem as partial credit may be given. MULTIPLE preference 1.A tax advantage of crinkle combination can progeny when the existing owner of a company sells out and receives: a. mo lootary resource to defer the taxable take on as a tax-free reorganization b.stock to defer the taxable gain as a tax-free reorganization c.cash to create a taxable gain d.stock to create a taxable gain 2.Publics attach to acquired the net assets of Citizen Company during 20X9. The purchase price was $800,000. On the particular envision of the transaction, Citizen had no long-term investments in marketable equity securities and $400,000 in liabilities.

The reliable value of Citizen assets on the acquisition date was as follows: |Current assets |$ 800,000 | |Noncurrent assets | 600,000 | | |$1,400,000 | How should Publics account for the $200,000 difference between the median(a) value of the net assets acquired, $1,000,000, and the cost, $800,000? a.retained earnings should be trim backwards by $200,000 b.cur! rent assets should be record at $685,000 and back(prenominal) assets recorded at $515,000 c.a $200,000 gain on acquisition of business should be accepted d.a deferred credit of $200,000 should be set up and subsequently amortized to incoming net income over a decimal point non to exceed 40 years 3.Acquisition costs such(prenominal) as the fees of accountants and lawyers that were necessary to negotiate and consummate the purchase are a.recorded as a deferred asset...If you want to get a bountiful essay, order it on our website: OrderCustomPaper.com

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