What amount of goodwill is created on acquisition This year, Fat purchased a 40% interest in Thin for $275,000. On the acquisition date, Thin’s shareholders’ equity was $450,000. The carrying amounts of Thin’s identifiable net assets approximated their fair values except for land, whose fair value exceeded its carrying value by $75,000. What amount of […]
How Bond Discount is Amortized GBS Corporation recently purchased a coupon bond at a discount. GBS must amortize the bond discount in its income statement if the bond is reported on the balance sheet at: a. amortized cost, and fair value through other comprehensive income. b. amortized cost, but not fair value through other comprehensive […]
Passive Cash Dividend Received Pine Company received a cash dividend from Wood Corporation. What is the impact on the balance sheet investment account of Pine if the investment is considered passive? a. No effect. b. Increase. c. Decrease. Related: Marketable investments reported on the balance sheet at fair value Solution The impact on the balance sheet […]
Marketable investments reported on the balance sheet at fair value Which of the following marketable investments are reported on the balance sheet at fair value? a. Passive debt securities and controlling securities. b. Influential securities and controlling securities. c. Passive equity securities. Related questions; (Solved) Impact of Passive Cash Dividend Received Solution Debt instruments […]
