上海对外经贸大学 高级财务会计学笔记-高级财务会计学（英）chapter 11.docVIP

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Copyright?2015PearsonEducation,Inc.

AdvancedAccounting,12e(Beamsetal.)

Chapter11ConsolidationTheories,Push-DownAccounting,andCorporateJointVentures

11.1MultipleChoiceQuestions

Usethefollowinginformationtoanswerthequestion(s)below.

PasfieldCorporationacquireda90%interestinSantiniCorporationfor$90,000cashonJanuary1,2014.ThefollowinginformationisavailableforSantiniatthattime.

BookValue FairValue Difference

Currentassets $40,000 $50,000 $10,000

Plantassets 60,000 75,000 15,000

Liabilities (50,000) (50,000) 0

Netassets $50,000 $75,000

1)Undertheentitytheory,aconsolidatedbalancesheetpreparedimmediatelyafterthebusinesscombinationwillshowgoodwillof

A)$15,000.

B)$22,500.

C)$25,000.

D)$32,500.

Answer:C

Explanation:C)ImputedvalueofSantini($90,000/90%) $100,000

Less:Fairvalueofnetassetsacquired (75,000)

Goodwill $25,000

Objective:LO1

Difficulty:Moderate

2)Undertheentitytheory,aconsolidatedbalancesheetpreparedimmediatelyafterthebusinesscombinationwillshownoncontrollinginterestof

A)$5,000.

B)$7,500.

C)$9,000.

D)$10,000.

Answer:D

Explanation:D)ImputedvalueofSantini($90,000/90%) $100,000

Noncontrollinginterestpercentage 10%

Noncontrollinginterest $10,000

Objective:LO1

Difficulty:Moderate

3)ParozCorporationacquireda70%interestinSandbergCorporationfor$900,000whenSandbergsstockholdersequityconsistedof$600,000ofCapitalStockand$600,000ofRetainedEarnings.ThefairvaluesofSandbergsnetassetswereequaltotheirrecordedbookvalues.Atthetimeofacquisition,onParozsbooks,Parozwillrecord

A)goodwillfor$60,000undertheparentcompanytheory.

B)goodwillfor$85,714undertheentitytheory.

C)investmentinSandbergfor$1,285,714undertheentitytheory.

D)investmentinSandbergfor$900,000undertheentityandparentcompanytheories.

Answer:D

Explanation:D)(Theinvestmentisrecordedat