Question 5.8.35 accounting Which method governs elimination of unrealizedprofit in upstream transactions?a) Proportional to dividends paidb) Subsidiary ownership percentc) Full elimination regardless of percentd) Parent company ownership percent

Explanation of Unrealized ProfitUnrealized profit refers to the gain on intercompany transactions…

Answered: Which method governs elimination of…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 8Q

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When an investor uses the cost method to account for investments in subsidiary, cash dividends received by the investor from the investee should normally be recorded as: A. Ignored. B. Dividend income. C. An addition to the investor’s share of the investee’s profit. D. A deduction from the investment account E. A deduction from the investor’s share of the investee’s profit.
The fair value method of accounting for stock a.recognizes dividends as income b.requires the investment to be decreased by the reported net income of the investee c.requires the investment to be increased by the reported net income of the investee d.is only appropriate as part of a consolidation
The method of accounting for subsidiaries where investment income is limited to dividends received is the a. cost method. b. simple equity method. c. investment method. d. sophisticated equity method.
When the income statement includes discontinued operations, which amounts require per share presentation?
The cost method of accounting for stock Group of answer choices recognizes dividends as income requires the investment to be decreased by the reported net income of the investee is only appropriate as part of a consolidation requires the investment to be increased by the reported net income of the investee
? Answer share
Which of the following costs of a business combination can be deducted from the value assigned to paid-in capital in excess of par? a. Direct and indirect acquisition costs. b. Direct acquisition costs. c. Direct acquisition costs and stock issue costs if stock is issued as consideration. d. Stock issue costs if stock is issued as consideration.
How will retained earnings be affected by purchase of treasury shares and subsequent sale of treasury shares at more than acquisition cost? Acquisition of TS Sale of TS a. no effect increase b. Increase no effect c. no effect no effect d. Increase decrease
Please do not give solution in image format ?
When the equity feature of a compound instrument is exercised, the related share premium is O A. transferred directly to retained earnings B. transferred to profit or loss c. transferred within equity
Which of the following would most likely appear under the heading of "Other Long-Term Assets" in the balance sheet? Multiple Choice Goodwill from the acquisition of another company Equipment used in primary operations Significant investment in equity securities of another company Long-term operating leases used in primary operations I
Current Attempt in Progress Equity investments that are accounted for under the cost model will result in O recognition of dividend income only when actually received. expensing transaction costs when incurred. O recognition of a gain or loss in other comprehensive income at disposal. O recognition of a gain or loss in net income at disposal.

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Which method governs elimination of unrealized profit in upstream transactions? a) Proportional to dividends paid b) Subsidiary ownership percent c) Full elimination regardless of percent d) Parent company ownership percent