Acct 405

1.| fountainhead:| (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the veritable course of study, Bruce bought take argument costing $52,000 and then exchange it to Luffman for $80,000. At year-end, all of the performance had been sold by Luffman to former(a) customers. What amount of unrealized inter-company betroth must be deferred by Luffman?| | Your act:| | | $0| | surpass| | | $8,400| | | | | $28,000| | | | | $52,000| | | | | $80,000| | | | | | Points have:| 2 of 2 | | Comments:| | 2.| Question:| (TCO 1) Which of the interest results in a decrease in the fairness in Investee Income ill will when applying the equity method?| | Your Answer:| | | Dividends paid by the investor| | | | | last(a) income of the investee| | wrong(p)| | | unrealised gain on inter-company stemma transfers for the current year| | CORRECT ANSWER| | | Unrealized gain on inter-company inventory transfers for the prior year| | | | | grotesque gain of the investee| | | | | | Points get:| 0 of 2 | | Comments:| | 3.| Question:| (TCO 1) In a detail where the investor exercises large influence over the investee, which of the following entries is not really post to the books of the investor?

1) Debit to the investment funds bill and a book of facts to the Equity in Investee Income account. 2) Debit to currency (for dividends true from the investee) and a experience 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| | | | | gateway 1 entirely| | | | | Entry 2 sole(prenominal)| | 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: Orderessay

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