Acct 405

1.| Question:| (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the veritable form, Bruce bought examine costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the yield had been sold by Luffman to other customers. What amount of unrealized inter-company employ must be deferred by Luffman?| | Your Answer:| | | $0| | castigate| | | $8,400| | | | | $28,000| | | | | $52,000| | | | | $80,000| | | | | | Points have:| 2 of 2 | | Comments:| | 2.| Question:| (TCO 1) Which of the following results in a decrease in the virtue in Investee Income brood when applying the equity method?| | Your Answer:| | | Dividends paid by the investor| | | | | last(a) income of the investee| | erroneous| | | Unrealized gain on inter-company archive transfers for the current year| | CORRECT ANSWER| | | Unrealized gain on inter-company inventory transfers for the prior year| | | | | Extraordinary gain of the investee| | | | | | Points have:| 0 of 2 | | Comments:| | 3.| Question:| (TCO 1) In a detail where the investor exercises crucial influence over the investee, which of the following entries is not really post to the books of the investor?

1) Debit to the coronation account and a book of facts to the Equity in Investee Income account. 2) Debit to Cash (for dividends received from the investee) and a knowledge to Dividend Revenue. 3) Debit to Cash (for dividends received from the investee) and a Credit to the Investment account.| | Your Answer:| | | Entries 1 and 2| | INCORRECT| | | Entries 2 and 3| | | | | Entry 1 but| |! | | | Entry 2 still| | CORRECT ANSWER| | | Entry 3 only| | | | | | Points Received:| 0 of 2 | | Comments:| | 4.| Question:| (TCO 1) On January 1, 2006, Dermot gild purchased 15% of the voting common stock of Horne...If you want to lend a full essay, order it on our website: OrderCustomPaper.com

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