Quiz

Quizzes
1.| Question :| (TCO 1) All of the pursual would require use of the truth method for enthronizations except|
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| Student Answer:| | Material inter- political party transactions |
| | | Investor participation in the policy-making process of the investee |
| | | Valuation at fair value |
| | | Technological dependency |
| | | Significant authorisation |
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| Points Received:| 2 of 2 |
| Comments:| |
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2.| Question :| (TCO 1) All of the following statements regarding the investment account using the equity method are true except|
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| Student Answer:| | The investment is record at cost |
| | | Dividends received are reported as revenue |
| | | Net income of investee increases the investment account |
| | | Dividends received suppress the investment account |
| | | Amortization of fair value everywhere cost reduces the investment account |
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| Points Received:| 2 of 2 |
| Comments:| |
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3.| Question :| (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought memorial costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the intersection had been sold by Luffman to other customers.



What amount of unrealized inter-company cyberspace must be deferred by Luffman?|
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| Student Answer:| | $0 |
| | | $8,400 |
| | | $28,000 |
| | | $52,000 |
| | | $80,000 |
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| Points Received:| 2 of 2 |
| Comments:| |
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4.| Question :| (TCO 1) A company should always use the equity method to account for an investment if|
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| Student Answer:| | It has the ability to exercise significant work on over the operating policies of the investee |
| | | It owns 30% of another companys stock |
| | | It has a controlling interest (more than 50%) of another companys stock |
| | | The investment was made...If you want to get a full essay, order it on our website: Orderessay



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