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Statement I: Gain on bargain purchase is included in the consolidated balance of shareholders’ equity at the date of acquisition.Statement II: For business combination for SMEs, all business combination expenses, direct, indirect, and share-issue costs are deducted in the consolidated balance of shareholders’ equity at the date of acquisition. a. False, True b. False, False c. True, True d.True, False

Statement I: Gain on bargain purchase is included in the consolidated balance of shareholders’ equity at the date of acquisition.Statement II: All business combination expenses, direct, indirect, and share-issue costs are deducted in the consolidated balance of shareholders’ equity at the date of acquisition.   True, False False, False True, True False, True

On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $708,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $212,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 303,000 $503,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Pic Year 5 Year 5 Retained earnings, beginning of year Profit Dividends Retained earnings, end of year $ 506,000 165,000 (100,000) $ 571,000 Year 6 $ 571,000 160,500 (120,000) $ 611,500 $ 303,000 118,500 (90,000) $ 331,500 Sic Year 6 $ 331,500 156,500 (90,000) $ 398,000

In every corporate liquidation, which type of credits will not share from the free assets of the corporation? *   a. Unsecured claims without priority b. Partially secured claims c. Fully secured claims d. Unsecured claims with priority

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Which of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? Question 7Answer a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liability

N4    common stockholders of a business enterprise are said to be the residual owners which mean that they a. have thr rights to specific assets of the business b. are entitled to a dividend every year in which the business earns profit c. can negotiate individual comtrscts on behalf of the enterprise d. bear the ultimate risks and uncertainties and recieve the benefits if enterprise ownership.

Which of the following liquidating dividend is not legal?    a. Liquidating dividend of a continuing merchandising corporation   b. Liquidating dividend of a mining corporation   c. Liquidating dividend of a wasting asset corporation   d. Liquidating dividend of a corporation at the state of bankruptcy

Profits or losses are recorded in a share capital account. 1 point O TRUE O FALSE The main differences between profit reported by a proprietorship and a 1 point corporation are income tax expense and salaries paid to owners. O TRUE O FALSE

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On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $726,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $260,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 324,000 pok $524,000 Int ences The following are the statements of retained earnings for the two companies for Years 5 and 6: Pic Sic Year 5 Year 6 Year 5 Year 6 Retained earnings, beginning of year $ 548,000 178,000 (100,000) $ 626,000 $ 626,000 159,000 (120,000) $ 665,000 $ 324,000 $ 380,500 159,500 Profit 146,500 (90,000) $ 380,500 Dividends (90,000) $ 450,000 Retained earnings, end of year Additional Information • Pic uses the cost method to account for its investment in Sic. Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any…

A bargain purchase arises when the price paid to acquire a controlling interest in another company is less than the acquirer’s share of the fair value of net assets of the company being acquired. At the end of your preliminary analysis, you believe that a business combination results in a bargain purchase. What is your next step? A. Recognize an immediate gain in the consolidated statement of profit and loss without further analysis. B. Recognize a liability in the consolidated balance sheet. C. Contact the acquiree to confirm its intention. D. Reassess each step of your analysis to confirm your preliminary findings.

The amount attributable to every share outstanding in case a corporation is liquidated.A. book valueB. par valueC. stated valueD. Market value

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Do not use negative signs with your answers below. Reconciliation of Cost to Equity Method Parent's pre-consolidation net income 401000 v Dividend Income 81000 v P% x Net income of subsidiary P% x AAP amortization 0 x Net income attributable to controlling interest $ 0 x b. Prepare the consolidated income statement for the current year. Do not use negative signs with your answers below. Consolidated Income Statement Sales $ 12200000 v Cost of goods sold 8120000 v Gross profit 4080000 v Operating expenses 0 x Net income Net income attributable to noncontrolling interests 0 x Net income 0 x

Matching Type. Choose the correct answer in the box provided.  These are distributions of the earnings of the corporation in the form of the corporation's own shares. * It is the procedure of restating assets, liabilities and share capital balances at its fair value for the purpose of eliminating deficit. * Share option is the best example of this kind of share-based compensation plan. * The date the liability for dividends must be recognized *

Statement 1: In the financial settlement of a contingent consideration classified as financial liability, the amount shall be remeasured at fair value with any gain or loss included in profit or loss.   Statement 2: If a new entity is formed to issue equity interests to effect a business combination one of the combining entitites that existed before the combination shall be identified as the acquirer.    Which statement/s is TRUE?

7. These are distributions of the earnings of the corporation in the form of the corporation's own shares. 8. It is the procedure of restating assets, liabilities and share capital balances at its fair value for the purpose of eliminating deficit. 9. Share option is the best example of this kind of share-based compensation plan.  10. The date the liability for dividends must be recognized

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50. Analyze the following: I – When a component of an entity was discontinued during the year, the component's operating loss of the current period should be included in income statement as part of revenue and expenses. II – If the fair value less cost of disposal is lower than the carrying amount of a non-current asset classified as held for sale, the difference is accounted for as an impairment loss. III – The effect of recording a 100% share dividend would be to leave working capital unaffected, decrease earnings per share and increase book value per share. Given these, we can conclude that: Group of answer choices Only statement II is false. Only statements I and III are true. Only statements I and II are true. Statement III is false.

Which of the following is NOT included in the cost of an acquired company? (applying section 19 of IFRS for SMEs) a. Contingent consideration determinable at the consummation date of the combination b. Finder’s fee for arranging the combination c. Cost of registering and issuing equity securities d. None of the above

Which of the following items retain their character when they are passed through to shareholders of an S corporation?          Wages paid Accelerated depreciation Net long-term capital gains Advertising expense All of the above retain their character when passed through