Exam (elaborations)
Advanced Accounting 12th Edition by Hoyle Schaefer Doupnik Test Bank
- Course
- Institution
- Book
Advanced Accounting 12th Edition by Hoyle Schaefer Doupnik Test Bank
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Test Bank for Advanced Accounting, 13th Edition, Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik.
-
Test Bank for Advanced Accounting 12th Edition by Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik et al: A Complete Solution 2023
-
Advanced Accounting 12th Edition by Hoyle Schaefer Doupnik Test Bank
Seller
Follow
QuizMerchant
Reviews received
Content preview
Advanced Accounting12th Edition by Hoyle
Schaefer Doupnik Test
Bank
1-1
.
, Chapter
01TheEquityMethodofAccountingforInvestments
MultipleChoiceQuestions
1. Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-
valuemethod to account for this investment. Trace reported net income of $110,000 for 2013
and paiddividends of $60,000 on October 1, 2013. How much income should Gaw recognize on
thisinvestment in2013?
A. $16,500.
B. $9,000.
C. $25,500.
D. $7,500.
1-2
.
,E. $50,000.
1-3
.
, 2. Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method
toaccountfortheinvestment.During2013,Dewreportedincomeof$250,000andpaiddividendsof
$80,000.Thereisnoamortizationassociatedwiththeinvestment.During2013,howmuchincomeshouldY
arorecognizerelatedtothis investment?
A. $24,000.
B. $75,000.
C. $99,000.
D. $51,000.
E. $80,000.
3. On January 1, 2013, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.'s
votingcommon stock which represents a 45% investment. No allocation to goodwill or other
specificaccount was made. Significant influence over Lennon was achieved by this acquisition.
Lennondistributedadividendof$2.50pershareduring2013andreportednetincomeof$670,000.Whatw
asthebalanceintheInvestmentinLennonCo.accountfoundinthefinancialrecordsofPacerasofDecem
ber31,2013?
A. $2,040,500.
B. $2,212,500.
C. $2,260,500.
D. $2,171,500.
E. $2,071,500.
1-4
.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QuizMerchant. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76800 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now