153) On December 31, 2010, Parent Corporation paid $800,000 to acquire 100% of the voting common shares of Child Corporation. At that date Child Corporation had common shares of $500,000 and retained earnings of $250,000. Assume any amount paid in excess of shareholders' equity is attributable to goodwill. a) Prepare the entry on Parent Corporation's […]
31) Which of the following taxes has a ceiling on the amount of annual earnings subject to tax? A) FICA—OASDI taxes B) Sales Tax C) Federal income tax D) FICA—Medicare taxes 32) ________ is a pay amount stated at an hourly rate. A) Salary B) Wage C) Commission D) Bonus 33) ________ is pay stated […]
Learning Objective 15-1 1) Which of the following is not true about the formal management control system? A) Includes procedures. B) Includes explicit rules. C) Includes shared values. D) Includes incentive plans. E) Includes performance measures. 2) Which of the following is true about the informal management control system? A) Includes procedures. B) Includes explicit […]
23) Column 1 Column 2 Column 3 Column 4 Raw materials purchases 24) Column 1 Column 2 Column 3 Column 4 Cost of goods sold 25) Column 1 Column 2 Column 3 Column 4 Factory rent expense
Pr. 9-121Accounting for investments – FV–NI On December 31, 2017, Hubble Corp. has the following securities in its portfolio of temporary investments: Cost Market 5,000 common shares of Orion Corp.$ 80,000$ 69,500 10,000 common shares of Rigel Ltd. 91,000 92,500 $171,000$162,000 All of the securities had been purchased in 2017. In 2018, Hubble completed […]
109.Using the compound interest tables, answer each of the following questions. Required: a. What is the present value on January 1, 2014, of $50,000 due on January 1, 2020, and discounted at 7% compounded annually? b. What is the present value on January 1, 2014, of $8,000 due on January 1, 2022, and discounted at […]
7) A plant asset with a book value of $200,000 is sold for $150,000. The applicable tax rate is 40%. What is the tax effect of the loss on sale? A) $20,000 cash outflow B) $20,000 cash inflow C) $30,000 cash inflow D) $170,000 cash inflow 8) The cash inflow from the sale of a […]
71) Mathew Corp exchanged similar assets with Simone Company in a transaction with commercial substance. Mathew gave up equipment that had a net book value of $47,000 (fair value $49,000) and Simone exchanged equipment with a net book value of $36,000 (fair value $35,000). What is the correct value at which Mathew should record the […]
11) Interest earned on the sinking fund will be subtracted from the Sinking Fund account. 12) On January 1, Auctions Online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries: a. Issued the bonds. b. […]
12) Which of the following statements is true regarding workgroup information systems? A) They are easy to change. B) They minimize data duplication among departments. C) They can be operated without training. D) They support 10 to 100 users. 13) ________ processes span an organization and support activities in multiple departments. A) Enterprise B) Inter-enterprise […]
