Acct 405

1.| Question:| (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the veritable yr, Bruce bought visit costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the payoff had been sold by Luffman to other customers. What amount of unrealized inter-company lucre must be deferred by Luffman?| | Your Answer:| | | $0| | even off| | | $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 righteousness in Investee Income musical score when applying the equity method?| | Your Answer:| | | Dividends paid by the investor| | | | | last(a) income of the investee| | unreasonable| | | Unrealized gain on inter-company scrutinise transfers for the current year| | CORRECT ANSWER| | | Unrealized gain on inter-company inventory transfers for the prior year| | | | | Extraordinary gain of the investee| | | | | | Points real:| 0 of 2 | | Comments:| | 3.| Question:| (TCO 1) In a detail where the investor exercises solid influence over the investee, which of the following entries is not really stick on to the books of the investor? 1) Debit to the investment 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 actualization 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 nevertheless| | 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: OrderCustom! Paper.com

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