Advanced Accounting,
5th Edition
by Susan S. Hamlen
Complete Chapter Solutions Manual areinclud
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ed (Ch 1 to 16)
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included
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, CHAPTER‖1
SOLUTIONS‖ TO‖MULTIPLE‖CHOICE‖QUESTIONS,‖EXERCISES‖AND‖PROBLEMS
MULTIPLE‖CHOICE‖QUESTIONS
1. c
$180,000‖-‖$160,000‖= $20,000
$125,000‖-‖$100,000‖= 25,000
Total‖gain $45,000
2. a
$29,000‖–‖$26,000‖=―$3,000
3. a
$207,544‖–‖[(6%‖x‖$200,000)‖–‖(4%‖x‖$207,544)]‖=―$203,846
4. d
Reclassification‖of‖unrealized‖loss‖on‖AFS‖securities‖sold
$1,000‖credit‖Un
realized‖gain‖on‖AFS‖securities‖held‖at‖year-end
6,000‖credit‖(1)‖T
otal‖amount‖reported‖in‖OCI $7,000‖ credit
(1)‖$81,000‖–‖($100,000‖–”$25,000)‖=―$6,000‖unrealized‖gain
5. d
$5,000,000‖+‖[40%‖x‖($600,000‖–‖$200,000)]‖=―$5,160,000
6. b
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,7. b
Reported‖net‖income;‖35%‖x‖$7,000,000‖=
$‖2,450,000‖
Less‖unconfirmed‖profit‖on‖ending‖inventory
35%‖x‖[$6,000,000‖–‖($6,000,000/1.25)]‖= ― (420,000)
Equity‖in‖net‖income $‖2,030,000
Less‖dividends;‖35%‖x‖$2,000,000 (700,000)
Plus‖beginning‖investment‖balance 50,000,000
Ending‖investment‖balance $51,330,000
8. d
Fizzy’s‖entry‖to‖record‖the‖acquisition‖is:
Current‖assets 25,000
Property 2,500,000
Goodwill 25,475,000
Liabilities 3,000,000
Cash 25,000,000
9. b
10. a
11. b
The‖entry‖to‖record‖the‖sale‖is:
Cash 410,000
Loss‖on‖sale‖of‖AFS‖securities 15,000
Investment‖in‖AFS‖securities 400,000
Other‖comprehensive‖income 25,000
The‖reclassification‖of‖the‖loss‖increases‖OCI,‖and‖the‖loss‖reported‖in‖income‖is‖the‖diffe
rence‖between‖the‖original‖cost‖($400,000‖+‖$25,000)‖and‖sales‖proceeds‖($410,000).
12. b
$285,000‖-‖$300,000‖=―$15,000‖loss
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, 13. d
Investment‖balance‖at‖the‖beginning‖of‖2023‖is‖$203,883‖(=$205,768‖–‖($6,000‖–‖(2%‖x
$205,768));‖2%‖x‖$203,883‖=―$4,078
14. c
Investment‖balance‖at‖the‖end‖of‖2022‖is‖$203,827‖(=$205,657‖–‖($8,000‖–‖(3%‖x
$205,657));‖$190,000‖-‖$203,827‖=―$13,827‖loss
15. c
$510,000‖-‖$500,000‖=―$10,000;‖unrealized‖gains‖are‖reported‖in‖income.
16. b
The‖basis‖difference‖is‖$180,000‖(=$3,000,000‖–
‖(30%‖x‖$9,400,000))‖(30%‖x‖$100,000)‖–‖$180,000/10‖=―$12,000
17. d
Investment‖balance,‖beginning‖of‖2020‖$10,000,000‖(
$2,400,000‖-‖$2,000,000)‖x‖40%‖=
160,000‖
($150,000‖-‖$200,000)‖x‖40%‖=
(20,000)‖
($60,000‖+‖$10,000‖-‖$25,000)‖x‖40%‖=― 18,000
Investment‖balance,‖end‖of‖2025 $10,158,000
18. b
$10,000,000‖–‖($400,000‖+‖$5,000,000‖-‖$6,000,000)‖=―$10,600,000
19. c
$25,000,000‖–‖($500,000‖+‖$8,000,000‖+‖$1,000,000‖-‖$6,000,000)‖=―$21,500,000
20. c
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