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Test bank and solution of understanding the issues (1)

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Nội dung chi tiết: Test bank and solution of understanding the issues (1)

Test bank and solution of understanding the issues (1)

CHAPTER 2UNDERSTANDING THE ISSUES1. (a) Jacobson has a passive level of ownership and in future periods will record dividend income of only 15% of Bil

Test bank and solution of understanding the issues (1)l-trite's declared dividends Jacobson will also have to adjust the investment to market value at the end of each period.(b> Jacobson has an influentia

l level of ownership and in future periods will record investment income of 40% of Biltrites net income. Any dividends declared by Blitrite will reduc Test bank and solution of understanding the issues (1)

e the Investment account but will not affect the investment income amount.(c) Jacobson has a controlling level of ownership and In future periods will

Test bank and solution of understanding the issues (1)

add 100% of BiItrite's net income to its own net income. Biltrites nominal account balances will be added to Jacobson's nominal accounts Any dividend

CHAPTER 2UNDERSTANDING THE ISSUES1. (a) Jacobson has a passive level of ownership and in future periods will record dividend income of only 15% of Bil

Test bank and solution of understanding the issues (1)..Fair value of net assets excluding goodwill Goodwill....................................(d) Jacobson has a controlling level of ownership and in fut

ure periods will add 100% of Biltrite s net income to its own net income All (100%) of Blitrite's nominal account balances will be added to Jacobson s Test bank and solution of understanding the issues (1)

nominal account balances. This will result in consolidated net income, followed by a distribution to the non-controlling interest equal to 20% of Bil

Test bank and solution of understanding the issues (1)

trites income. Any dividends declared by Biltnte will not affect Jacobson's income.2. The elimination process serves to make the consolidated financia

CHAPTER 2UNDERSTANDING THE ISSUES1. (a) Jacobson has a passive level of ownership and in future periods will record dividend income of only 15% of Bil

Test bank and solution of understanding the issues (1)e eliminated and replaced by thesubsidiarys net assets.CompanyParentNCIImpliedPriceValueFair Value-1012000001200N/A. gQQ.QW—ÃQCLQ.Q.Q$ 400.coo400Net A

ssets—marked up 300,000 ($800,000 fair value - $500,000 book value) Goodwill—S400.000 ($1,200,000 - S800.000)CompanyParentNCIImpliedPriceValueValue Test bank and solution of understanding the issues (1)

Analysis ScheduleFair Value-0.8-0.2Company fair valueS1.200.000S960.000240Fair value of net assets excluding goodwill800000640000160000Goodwill....

Test bank and solution of understanding the issues (1)

...1 400.00032000030Net Assets—marked up S300.000 (S800.000 fair value - S500.000 book value)Goodwill—$400,000 ($1,200.000 - $800,000)The NCI would b

CHAPTER 2UNDERSTANDING THE ISSUES1. (a) Jacobson has a passive level of ownership and in future periods will record dividend income of only 15% of Bil

Test bank and solution of understanding the issues (1). May Ort be scanned, copied cc duplicated or posted to a publicly accessible website. a whole cr m part44959(a)CompanyParentNCIImpliedPriceValueValue

Analysis ScheduleFair Value-10Company fair value10000001000N/AFair value of net assets excluding goodwill.850850Goodwill$ ‘50.000150 Test bank and solution of understanding the issues (1)

CHAPTER 2UNDERSTANDING THE ISSUES1. (a) Jacobson has a passive level of ownership and in future periods will record dividend income of only 15% of Bil

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