ACC 557 Week 9 Chapter 12 Quiz (3 Sets) (Updated One)

Which of the following is not a true statement regarding short-term debt investments?

If a parent company has two wholly owned subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company?

When an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that the investor

At December 31, 2013, Gammon Inc. has these data on its security investments:

If the Non-trading securities are held as long-term investments, which of the following will be recorded to adjust the securities to fair value?

Corporations invest in other companies for all of the following reasons except to

On January 1, 2013, Audrey Corp. paid $800,000 for 100,000 shares of Off Company's common stock, which represents 40% of Off's outstanding common stock. Off reported net income of $200,000 and paid cash dividends of $60,000 during 2013. Audrey should report the investment in Off Company on its December 31, 2013, balance sheet at:

Temper Co. purchased 60, 6% Irick Company bonds for $60,000 cash plus brokerage fees of $600. Interest is payable semiannually on July 1 and January 1. If 30 of the securities are sold on July 1 for $32,000 less $300 brokerage fees, the entry would include a credit to Gain on Sale of Debt Investments for

A company may purchase a noncontrolling interest in another firm in a related industry

Eck Corporation sells 250 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $25 a share. Eck sold the shares for $40 a share. The entry to record the sale is

If the cost method is used to account for a long-term investment in common stock, dividends received should be

Under the equity method, the Stock Investments account is increased when the

An unrealized loss on non-trading securities is

On January 2, Dickson Corporation acquired 30% of the outstanding common stock of Crane Company for $550,000. For the year ended December 31, Crane reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. At December 31, the carrying value of Dickson's investment in Crane under the equity method is

Securities bought and held primarily for sale in the near term to generate income on short-term price differences are

Benton Company has the following data at December 31, 2013 for its securities:

On the financial statements, which of the following correctly explains the presentation of the related unrealized gain (loss) for these securities?