Which of the following costs of a business combination can be deducted from the value assigned to paid-in capital in excess of par? a. Direct and indirect acquisition costs. b. Direct acquisition costs. c. Direct acquisition costs and stock issue costs if stock is issued as consideration. d. Stock issue costs if stock is issued as consideration.

Which of the following costs of a business combination can be deducted from the value assigned to paid-in capital in excess of par? a. Direct and indirect acquisition costs. b. Direct acquisition costs. c. Direct acquisition costs and stock issue costs if stock is issued as consideration. d. Stock issue costs if stock is issued as consideration.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 21MC: Which of the following measures the portion of a corporations profit allocated to each outstanding...

See similar textbooks

Similar questions

Explain the difference between the proportional methodand the incremental method of allocating the proceeds oflump-sum sales of capital stock.
Determine the following for Tram-Ropes Limited: A. Total Market value of the firm’s capital structure B. After-tax Cost of Debt C. Cost of Common Stock D. Cost of Preferred Stock E. WACC
Boehn Corporation accounts for its investment in the common stock of Sells Company under the equity method, since they exert significant influence. Boehn Corporation should ordinarily record a cash dividend received from Sells as a. a reduction of the carrying value of the investment. b. additional paid-in capital. c. an addition to the carrying value of the investment. d. dividend income.
Which of the following accounting methods is used to account for controlling interest investments? A. cost method B. discounted cash flow method C. consolidation method D. acquisition metho
In a stock acquisition accounted for by the equity method, a portion of the purchase price often is attributed to goodwill or to specific assets or liabilities. How are these amounts determined at acquisition? How are these amounts accounted for in subsequent periods?
Compute for the COST OF STOCK or SHARE RIGHTS allocated from the investment.
When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capitalb. fair market value of the share capital on the date of recordc. fair market value of the share capital on the date of declarationd. fair market value of the share capital on the date of distribution
The cost of registering equity securities in a business combination should be capitalized debited to share premium expensed
Which of the following is not true about the determination of components used to determine the weighted average cost of capital? Either Capital Asset Pricing model approach or Discounted Cash Flow model are acceptable method of determining the cost of retained earning Tax rates are excluded in getting the cost of retained earnings and cost of issuance of new equity The value of a preferred share can be computed by multiplying the cost of preferred share with the uniform preferred dividends Discounted cash flow approach can be applied if data related to market return, nominal risk-free rate, and beta are not available
Answer the question assuming that the preference share capital of Love Company are non-cumulative.
The cost method of accounting for stock Group of answer choices recognizes dividends as income requires the investment to be decreased by the reported net income of the investee is only appropriate as part of a consolidation requires the investment to be increased by the reported net income of the investee
When an investor uses the cost method to account for investments in subsidiary, cash dividends received by the investor from the investee should normally be recorded as: A. Ignored. B. Dividend income. C. An addition to the investor’s share of the investee’s profit. D. A deduction from the investment account E. A deduction from the investor’s share of the investee’s profit.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

a.	Direct and indirect acquisition costs.
b.	Direct acquisition costs.
c.	Direct acquisition costs and stock issue costs if stock is issued as consideration.
d.	Stock issue costs if stock is issued as consideration.