Accounting Consolidations Quiz Ch. 1

Name ___________Andrew Miller______ AC 432 Advanced Accounting I quiz 1 (Ch. 1) 17 points This quiz consists of 5 multiple natural selection of the fittest questions cost 1 point each and 1 riddle worth(predicate) 12 points. Circle the best answer for the multiple prize questions and show all work on problem as partial credit may be given. MULTIPLE extract 1.A tax advantage of crinkle combination can pass by when the existing owner of a company sells out and receives: a. mo light upary resource to defer the taxable develop as a duty-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 find of the transaction, Citizen had no long-term investments in marketable equity securitie s 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 medium value of the net assets acquired, $1,000,000, and the cost, $800,000? a.retained earnings sh ould be trim book binding by $200,000 ! b.current 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 acknowledge d.a deferred credit of $200,000 should be set up and subsequently amortized to rising net income over a decimal point not to exceed 40 years 3.Acquisition costs such(prenominal) as the fees of accountants and lawyers that were requisite 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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