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
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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
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.
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
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.