If you are dealing with critical challenges in Advanced Financial Accounting, then this test bank is for you. Written by Baker, the 8th Edition encompasses every fundamental concept starting from business combinations to the development of consolidated financial statements, thus preparing you to answer even the most difficult questions in this regard.
Results Oriented Learning
Advanced Financial Accounting Test Bank is a well-rounded repository of practice questions that closely follows the format and scope of Baker 8th Edition. It includes topics of major accounting concepts and resolving skills which have been updated concerning current accounting practices.
Anytime, Anywhere Study
By having instantaneous contact with the material of this test bank, you are offered an option to study according to your preference and pace. It also comes in different formats across various interfaces to make the information more accessible and easy to use.
Easy Solutions for More Informed Construction
This test bank does not only provide questions, but detailed solutions for each specific task. These solutions are critical for students whose aim is to master complex aspects of advanced accounting such as income taxes and foreign currencies. This information is especially helpful for those who want to comprehend a lot of material before the examination.
Key Topics Covered
Corporate Mergers and Acquisitions
Understand the complexities surrounding the combination of business entities and how consolidated financial statements are to be prepared.
Foreign Currency Transactions and Hedging
Be proficient in currency exchange and recording the foreign investment where applicable.
Income Taxes and Revenue Recognition
Prepare to deal with the analytical aspects of tax allocation and revenue recognition, two issues that are very critical in the field of advanced financial accounting.
Benefits of Using the Test Bank
If you utilize practice questions based on the 8th Edition by Baker, no exam will ever intimidate you again. This test bank is meant to enable you to practice as much as possible for perfect preparation not lacking in any aspect.
If you are using this practice material as preparation material for your Advanced Financial Accounting exam, this test bank contains the preparation material perfectly fitted to what you would be tested on. All practice hours before your exam are focused on achieving the same result, in the same structure, and same difficulty level as your exam.
Comprehensive and Detailed Explanation And In-Depth Study Of Topics
Other topics like investment analysis and joint ventures are seen as complex and broad and may be broken down into smaller chapters therefore promoting a better understanding of the contents. This is ideal for students who may need more clarity in already complicated subjects.
Conclusion
The test bank in question is indeed practical, with all the essential content included, making the Test Bank for Advanced Financial Accounting 8th Edition Baker extremely valuable for students. Providing practical exercises, step-by-step solutions, and access from anywhere, it serves the purpose of students who want to learn advanced accounting concepts and pass the examinations. For those pursuing objectives to strengthen their skills in financial accounting, this test bank is worth considering in the learning process. Get your copy to boost your skill level!
Test Bank For Advanced Financial Accounting 8th Edition by Baker
Chapter 02 – Reporting Intercorporate Interests
Multiple Choice Questions
On January 1, 2007, Rotor Corporation acquired 30 percent of Stator Company’s stock for $150,000. On the acquisition date, Stator reported net assets of $450,000 valued at historical cost and $500,000 stated at fair value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported net income of $25,000 and $15,000 and paid dividends of $10,000 and $12,000, respectively. Rotor uses the equity method.
Based on the preceding information, what amount of differential will be amortized annually?
A. $0 B. $750 C. $1,000 D. $2,000
Based on the preceding information, what will be the balance in the investment account on Dec 31, 2007?
A. $150,000 B. $157,500 C. $154,500 D. $153,500
Based on the preceding information, what amount of investment income will be reported by Rotor for the year 2007?
A. $6,500 B. $7,500 C. $7,000 D. $25,000
2-1
Chapter 02 – Reporting Intercorporate Interests
Based on the preceding information, what amount will Rotor report as the balance in the investment account on Dec 31, 2008?
A. $150,000 B. $157,500 C. $153,400 D. $153,500
Based on the preceding information, what amount of investment income will be reported by Rotor for 2008?
A. $6,500 B. $7,500 C. $3,500 D. $4,500
Based on the preceding information, had Rotor Corporation used the cost method, what would have been the balance in the investment account on Dec 31, 2008?
A. $150,000 B. $157,500 C. $153,400 D. $153,500
On January 1, 2007, Firewire Company acquired 40 percent of Browser Company’s common stock. For this acquisition, Firewire paid $45,000 above book value. The full differential was attributed to equipment with a remaining life of ten years and zero salvage value at the date of acquisition. During 2007 and 2008, Browser reported net income of $90,000 and $50,000 and paid dividends of $40,000 and $60,000, respectively. Firewire reported a balance in its investment account of $230,000 on December 31, 2008. It uses the equity method in accounting for this investment.
2-2
Chapter 02 – Reporting Intercorporate Interests
Based on the preceding information, what is the annual amount of amortization of differential over the ten years?
A. $0
B. $1,800 C. $4,500 D. $8,500
Based on the preceding information, during 2007, Firewire will report:
A. an increase in the investment account balance of $15,500.
B. a decrease in the investment account balance of $20,000.
C. an increase in the investment account balance of $36,000.
D. a decrease in the investment account balance of $31,500.
Based on the preceding information, during 2008, Firewire will report: A. an increase in the investment account balance of $8,000.
B. a decrease in the investment account balance of $15,500. C. an increase in the investment account balance of $20,000. D. a decrease in the investment account balance of $8,500.
Based on the information provided, what would be the amount paid by Firewire for this acquisition?
A. $254,000 B. $223,000 C. $230,000 D. $174,000
2-3
Chapter 02 – Reporting Intercorporate Interests
On January 1, 2009, Athlon Company acquired 30 percent of the common stock of Opteron Corporation, at underlying book value. For the same year, Opteron reported a net income of $55,000, which includes an extraordinary gain of 40,000. It did not pay any dividends during the year. By what amount would Athlon’s investment in Opteron Corporation increase for the year, if Athlon used the equity method?
A. $0
B. $16,500 C. $4,500 D. $12,000
On January 1, 2008, William Company acquired 30 percent of eGate Company’s common stock, at an underlying book value of $100,000. eGate has 100,000 shares of $2 par value, 5 percent cumulative preferred stock outstanding. No dividends are in arrears. eGate reported a net income of $150,000 for 2008 and paid total dividends of $72,000. William uses the equity method to account for this investment.
Based on the preceding information, what amount would William Company receive as dividends from eGate for the year?
A. $62,000 B. $21,600 C. $18,600 D. $54,000
Based on the preceding information, what amount of investment income will William Company report from its investment in eGate for the year?
A. $45,000 B. $42,000 C. $62,000 D. $35,000
2-4
Chapter 02 – Reporting Intercorporate Interests
Based on the preceding information, what amount would be reported by William Company as the balance in its investment account on December 31, 2008?
A. $100,000 B. $123,400 C. $120,400 D. $142,000
Denver Corporation owns 25 percent of the voting shares of Alamos Corporation. In 2008, Alamos reported net income of $120,000 and paid dividends of $30,000. Denver uses the equity method to account for this investment. Denver reported a taxable income of $160,000 on its separate operations and has an effective tax rate of 40 percent. There is an 80 percent exemption on intercompany dividends.
Based on the preceding information, income tax expense for Denver for the year 2008 will
by:
A. $67,000 B. $64,600 C. $64,000 D. $66,400
Based on the preceding information, income taxes payable for Denver for the year 2008 will be:
A. $67,000 B. $64,600 C. $64,000 D. $76,000
Connector Corporation invested in an unincorporated joint venture and elected to use pro rata consolidation in preparing its financial statements. Connector reported an income of $120,000 from its separate operations and a net income of $150,000 for the year ended December 31, 2008. The joint venture reported assets of $150,000 and liabilities of $60,000 on January 1, 2008, and assets of $240,000 and liabilities of $75,000 on December 31, 2008. It made no distributions to owners during the year. Connector reports total assets (excluding its investment in the unincorporated joint venture) of $550,000 on December 31, 2008.
Reviews
There are no reviews yet.
Be the first to review “Test Bank For Advanced Financial Accounting 8th Edition by Baker”Cancel Reply
Reviews
There are no reviews yet.