Advanced Accounting,
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5th Edition
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by Susan S. Hamlen
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Complete Chapter Solutions Manual
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areincluded (Ch 1 to 16)
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** Immediate Download
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** Swift Response
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** All Chapters included
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, CHAPTER g1
SOLUTIONS g TO gMULTIPLE gCHOICE gQUESTIONS, gEXERCISES gAND gPROBLEMS
MULTIPLE gCHOICE gQUESTIONS
1. c
$180,000 g- g$160,000 g= $20,000
$125,000 g- g$100,000 g= 25,000
Total ggain $45,000
2. a
$29,000 g– g$26,000 g= g$3,000
3. a
$207,544 g– g[(6% gx g$200,000) g– g(4% gx g$207,544)] g= g$203,846
4. d
Reclassification gof gunrealized gloss gon gAFS gsecurities gsold $1,000 gcredit
gUnrealized ggain gon gAFS gsecurities gheld gat gyear-end 6,000 gcredit g(1)
gTotal gamount greported gin gOCI $7,000 g credit
(1) g$81,000 g– g($100,000 g– g$25,000) g= g$6,000 gunrealized ggain
5. d
$5,000,000 g+ g[40% gx g($600,000 g– g$200,000)] g= g$5,160,000
6. b
2023
Solutions gManual, 1-1
gChapter g1
,7. b
Reported gnet gincome; g35% gx g$7,000,000 g= $ g2,450,000
gLess gunconfirmed gprofit gon gending ginventory
35% gx g[$6,000,000 g– g($6,000,000/1.25)] g= g (420,000)
Equity gin gnet gincome $ g2,030,000
Less gdividends; g35% gx g$2,000,000 (700,000)
Plus gbeginning ginvestment gbalance 50,000,000
Ending ginvestment gbalance $51,330,000
8. d
Fizzy’s gentry gto grecord gthe gacquisition gis:
Current gassets 25,000
Property 2,500,000
Goodwill 25,475,000
Liabilities 3,000,000
Cash 25,000,000
9. b
10. a
11. b
The gentry gto grecord gthe gsale gis:
Cash 410,000
Loss gon gsale gof gAFS gsecurities 15,000
Investment gin gAFS gsecurities 400,000
Other gcomprehensive gincome 25,000
The greclassification gof gthe gloss gincreases gOCI, gand gthe gloss greported gin gincome gis
gthe gdifference gbetween gthe goriginal gcost g($400,000 g+ g$25,000) gand gsales gproceeds
g($410,000).
12. b
$285,000 g- g$300,000 g= g$15,000 gloss
2023
1-2 Advanced gAccounting, g5th
gEdition
, 13. d
Investment gbalance gat gthe gbeginning gof g2023 gis g$203,883 g(=$205,768 g– g($6,000 g– g(2% gx
$205,768)); g2% gx g$203,883 g= g$4,078
14. c
Investment gbalance gat gthe gend gof g2022 gis g$203,827 g(=$205,657 g– g($8,000 g– g(3% gx
$205,657)); g$190,000 g- g$203,827 g= g$13,827 gloss
15. c
$510,000 g- g$500,000 g= g$10,000; gunrealized ggains gare greported gin gincome.
16. b
The gbasis gdifference gis g$180,000 g(=$3,000,000 g– g(30% gx
g$9,400,000))g(30% gx g$100,000) g– g$180,000/10 g= g$12,000
17. d
Investment gbalance, gbeginning gof g2020
g$10,000,000 g($2,400,000 g- g$2,000,000) gx g40% g=
160,000
g($150,000 g- g$200,000) gx g40% g= (20,000)
g($60,000 g+ g$10,000 g- g$25,000) gx g40% g= g 18,000
Investment gbalance, gend gof g2025 $10,158,000
18. b
$10,000,000 g– g($400,000 g+ g$5,000,000 g- g$6,000,000) g= g$10,600,000
19. c
$25,000,000 g– g($500,000 g+ g$8,000,000 g+ g$1,000,000 g- g$6,000,000) g= g$21,500,000
20. c
2023
Solutions gManual, 1-3
gChapter g1
