1. ABC Ent, purchases 90% of the outstanding voting shares of DEF Corp on January 1, 2021. On that date, A. ABC’s Non-controlling interest account will include 10% of the book value of DEF’s net assets B. ABC’s Non-controlling interest account will include 10% of the fair value of DEF’s net asset. C. ABC’s Non-controlling interest acocunt will include 10% of any unallocated portion of the acquisition differential on the Date of Acquisition. D. ABC’s Non-controlling interest account will include 10% of the acquisition differential on the Date of Acquisition. 2. In a share acquisition business combination resulting in a parent- subsidiary relationship, the difference between the current fair values and book values of the subsidiary’s identifiable net assets on acquisition date are: A. Entered in the accounting records of the subsidiary B. Provided in a consolidated statement worksheet elimination. C. Account for in appropriately titled ledger accounts in the parent company’s accounting records D. Disregarded asset and liability accounts of the subsidiary
1. ABC Ent, purchases 90% of the outstanding voting shares of DEF Corp on January 1, 2021. On that date, A. ABC’s Non-controlling interest account will include 10% of the book value of DEF’s net assets B. ABC’s Non-controlling interest account will include 10% of the fair value of DEF’s net asset. C. ABC’s Non-controlling interest acocunt will include 10% of any unallocated portion of the acquisition differential on the Date of Acquisition. D. ABC’s Non-controlling interest account will include 10% of the acquisition differential on the Date of Acquisition. 2. In a share acquisition business combination resulting in a parent- subsidiary relationship, the difference between the current fair values and book values of the subsidiary’s identifiable net assets on acquisition date are: A. Entered in the accounting records of the subsidiary B. Provided in a consolidated statement worksheet elimination. C. Account for in appropriately titled ledger accounts in the parent company’s accounting records D. Disregarded asset and liability accounts of the subsidiary
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 19E
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1. ABC Ent, purchases 90% of the outstanding voting shares of DEF Corp on January 1, 2021. On that date,
A. ABC’s Non-controlling interest account will include 10% of the book value of DEF’s net assets
B. ABC’s Non-controlling interest account will include 10% of the fair value of DEF’s net asset.
C. ABC’s Non-controlling interest acocunt will include 10% of any unallocated portion of the acquisition differential on the Date of Acquisition.
D. ABC’s Non-controlling interest account will include 10% of the acquisition differential on the Date of Acquisition.
2.
In a share acquisition business combination resulting in a parent- subsidiary relationship, the difference between the current fair values and book values of the subsidiary’s identifiable net assets on acquisition date are:
A. Entered in the accounting records of the subsidiary
B. Provided in a consolidated statement worksheet elimination.
C. Account for in appropriately titled ledger accounts in the parent company’s accounting records
D. Disregarded
asset and liability accounts of the subsidiary
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