Advanced Accounting

Chapter 04 Consolidated Financial Statements and Outside Ownership Multiple Choice Questions 1. For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except : A. identiﬁable assets acquired, at fair value. B. liabilities assumed, at book value. C. non-controlling interest, at fair value. D. goodwill or a gain from bargain purchase. E. none of these choices is correct. 2. When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What amount should have been reported for the land in a consolidated balance sheet at the acquisition date? A. $52,50 0. B. $70,00 0. C. $75,00 0. D. $92,50 0. E. $100,00 0. 3. When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What is the total amount of excess land allocation at the acquisition date? A. $0 . B. $30,00 0. C. $22,50 0. D. $25,00 0. E. $17,50 0. 4. When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What is the amount of excess land allocation attributed to the controlling interest at the acquisition date? A. $0 . B. $30,00 0. C. $22,50 0. D. $25,00 0. E. $17,50 0. 5. When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What is the amount of excess land allocation attributed to the non- controlling interest at the acquisition date? A. $0 . B. $30,00 0. C. $22,50 0. D. $7,50 0. E. $17,50 0. 6. When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What amount should have been reported for the land in a consolidated balance sheet, assuming the investment was obtained prior to January 1, 2009 and the purchase method of accounting for business combinations was used? A. $70,00 0. B. $75,00 0. C. $85,00 0. D. $92,50 0. E. $100,00 0. 7. Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What is the total amount of goodwill recognized at the date of acquisition? A. $150,00 0. B. $250,00 0. C. $0 . D. $120,00 0. E. $170,00 0.

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