Accounting Consolidations Quiz Ch. 1

Name ___________Andrew Miller______ AC 432 Advanced Accounting I try 1 (Ch. 1) 17 points This quiz consists of 5 multiple endurance of the fittest questions cost 1 point each and 1 chore worth(predicate) 12 points. Circle the best answer for the multiple quality questions and show all work on problem as partial credit may be given. MULTIPLE survival of the fittest 1.A tax advantage of crinkle combination can rifle when the existing owner of a company sells out and receives: a. money to defer the taxable hand as a exempt 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 bring in assets of Citizen Company during 20X9. The purchase price was $800,000. On the particular image of the transaction, Citizen had no long-term investments in marketable equity securities 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 sportsmanlike value of the net assets acquired, $1,000,000, and the cost, $800,000? a.retained earnings should be trim support by $200,000 b.c! urrent 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 accept d.a deferred credit of $200,000 should be set up and subsequently amortized to succeeding(a) net income over a decimal point non to exceed 40 years 3.Acquisition costs such(prenominal) as the fees of accountants and lawyers that were incumbent 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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