Answer the following statements true (T) or false (F)

All intangible assets are initially recorded at the sacrifice incurred to acquire the assets.


ANSWER: T

Business

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On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value. Plimsol accounts for its investment in Shipping at cost. Shipping's retained earnings was $75,000 on the date of acquisition. On December 31, 20X4, the trial balance data for the two companies are as follows:   Plimsol Co.Shipping Corp.ItemDebitCreditDebit Credit Current Assets$100,000    $75,000    Depreciable Assets (net) 200,000     150,000    Investment in Shipping Corp. 125,000          Other Expenses 60,000     45,000    Depreciation Expense 20,000     15,000    Dividends Declared 25,000     15,000    Current Liabilities   $40,000    $25,000 Long-Term

Debt    75,000     50,000 Common Stock    100,000     50,000 Retained Earnings    150,000     75,000 Sales    150,000     100,000 Dividend Income, Shipping Corp.    15,000        $530,000 $530,000 $300,000 $300,000 Based on the information provided, what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31, 20X4? A. $210,000 B. $310,000 C. $225,000 D. $235,000

Business

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

A) Stock dividend. B) Stock subscription. C) Premium on stock. D) Discount on stock. E) Treasury stock.

Business

Suggesting items to Internet customers based on their buying patterns

A. is from the collection and analysis of customer purchase data B. is known as "shop at one location" C. has increased sellers' inventory levels D. all of the choices are correct

Business

A use tax is imposed by:

a. The Federal government and all states. b. The Federal government and a majority of the states. c. All states and not the Federal government. d. Most of the states and not the Federal government. e. None of these.

Business