100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
SOLUTIONS MANUAL for Advanced Financial Accounting, 13th Edition. By Theodore Christensen, David Cottrell and Cassy Budd _ Complete Download.$21.49
Add to cart
Test Bank For Advanced Financial Accounting 13th Edition By Theodore Christensen, Complete Chapters 1 - 20, Verified Newest Version Test Bank For Advanced Financial Accounting 13th Edition By Theodore Christensen, Complete Chapters 1 - 20, Verified Newest Version Test Bank For Advanced Financial Ac...
Chapter 1 td Intercorporate Acquisitions and Investments in Other Entities t d t d t d t d t d t d
1) Assuming no impairment in value prior to transfer, assets transferred by a parent company toa
t d t d t d td t d t d td td td t d td t d t d td dt
nother entity it has created should be recorded by the newly created entity at the assets':
t d td t d td td t d td td td td td t d td td t d
A) cost to the parent company. td td td t d
B) book value on the parent company's books at the date of transfer.
t d t d td t d t d t d td td t d td td
C) fair value at the date of transfer.
t d td td t d td td
D) fair value of consideration exchanged by the newly created entity.
td dt td td td td td td td
Answer: B Diffic t d td
ulty: 1 Easy td dt
Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities Learning O
td td td td td td td td td td td dt
bjective: 01-
01 Understand and explain the reasons for and different methods of business expansion, the types
td td td td td td td td td td td t d t d t d t
of organizational structures, and the types of acquisitions.; 01-
d t d t d t d t d t d t d td t d dt
03 Make calculations and prepare journal entries for the creation of a business entity.
td td td td td td t d td td td td t d td
Bloom's:
Remember AACSB: td
tReflective Thinking AICPA:
d dt dt
FN Decision Making td t d
2) Given the increased development of complex business structures, which of the followingregul
td td td td td td td td td td td dt
ators is responsible for the continued usefulness of accounting reports?
td dt td td td td td td td
A) Securities and Exchange Commission (SEC) t d t d t d t d
B) Public Company Accounting Oversight Board (PCAOB) t d t d t d t d t d
C) Financial Accounting Standards Board (FASB) t d t d t d t d
D) All of the other answers are correct
t d td t d t d t d t d
Answer: D Diffic t d td
ulty: 1 Easy td dt
Topic: An Introduction to Complex Business Structures td t d t d t d t d
Learning Objective: 01- dt
01 Understand and explain the reasons for and different methods ofbusiness expansion, the types
td dt td td td td td td td td dt td t d td td
of organizational structures, and the types of acquisitions.
td t d td td td t d td
Bloom's:
Remember AACSB: td
tReflective Thinking AICPA:
d dt dt
FN Reporting td
3) A business combination in which the acquired company's assets and liabilities are combinedwith t
td td td td td td td td td td td td dt td
hose of the acquiring company into a single entity is defined as:
td td td td td td td td td td td
A) Stock acquisition td
B) Leveraged buyout td
C) Statutory Merger td
,D) Reverse statutory rollup
t d td
, Answer: C Diffic t d td
ulty: 1 Easy td dt
Topic: Organizational Structure and Financial Reporting t d t d t d t d
Learning Objective: 01- dt
04 Understand and explain the differences between different forms ofbusiness combinations.
td dt td td td dt td td td dt td
Bloom's:
Remember AACSB: td
tReflective Thinking AICPA:
d dt dt
FN Decision Making td t d
4) In which of the following situations do accounting standards not require that the financials
t d t d td t d t d td t d t d t d t d t d t d t d dt
tatements ofthe parent and subsidiary be consolidated? td td td td td td td
A) A corporation creates a new 100 percent owned subsidiary
td td dt td dt td td td
B) A corporation purchases 90 percent of the voting stock of another company
td td td t d t d td t d t d t d td t d
C) A corporation has both control and majority ownership of an unincorporated company
td t d t d t d td t d t d t d td t d t d
D) A corporation owns less-than a controlling interest in an unincorporated company
t d t d t d td t d t d t d td td t d
Answer: D Diffic t d td
ulty: 1 Easy td dt
Topic: Organizational Structure and Financial Reporting t d t d t d t d
Learning Objective: 01- dt
01 Understand and explain the reasons for and different methods ofbusiness expansion, the types o
td td td td td td td td td td dt t d t d td td
f organizational structures, and the types of acquisitions.
td t d td td td t d td
Bloom's:
Remember AACSB: td
t Reflective Thinking AICPA:
d td dt
FN Decision Making td t d
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. After
td td dt td td td td td td dt td td td td t
exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary,Regan Com
d td td td td td td td td td td td td td td td dt td
pany, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-
td td td td td td td td td td td td td td
line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal reve
td td td td td td td td td td td td td td td td
aled that the building has a fair value of $200,000.
td td td td dt td td td td
5) Based on the information provided, at the time of the transfer, Regan Company should record:
t d td t d td t d t d td t d td t d t d td t d t d
A) Building at $180,000 and no accumulated depreciation. t d t d t d t d t d t d
B) Building at $162,000 and no accumulated depreciation. t d t d t d t d t d t d
C) Building at $200,000 and accumulated depreciation of $24,000. t d t d t d t d t d t d td
D) Building at $180,000 and accumulated depreciation of $18,000. t d t d t d t d t d t d t d
Answer: D Difficulty td td td
: 2 Medium
t d t d
Topic:
Valuation of Business Entities; Accounting for Internal Expansion: Creating Business t d t d t d t d t d t d t d t d t d td
Entities
Learning Objective: 01- dt
04 Understand and explain the differences between different forms of business combinations.; 01-
td td td td td td td td td td t d t d
03 Make calculations and prepare journal entries for the creation of a business entity.
t d t d td t d t d t d t d t d t d t d td td td
Bloom's:
Understand AACSB td
: Analytical Thinking AICPA:
t d dt dt
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Smartdove. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $21.49. You're not tied to anything after your purchase.
