Purchaser Corporation acquires 30% of the outstanding voting common shares of the Investee Corporation for $600,000 . Purchaser Corporation acquires the investment in Investee Corporation by buying previously issued shares of Investee Corporation from other investors. Which of the following is/are true?
a. On the balance sheet, an investment accounted for with the equity method appears among noncurrent assets.
b. On the balance sheet, the amount shown generally equals the acquisition cost of the shares, plus Purchaser Corporation's share of Investee Corporation's undistributed earnings (or losses) since the date Purchaser Corporation acquired the shares, plus or minus amortization of any excess cost at the date of acquisition attributable to assets with limited lives.
c. On the income statement, Purchaser Corporation reports each period its share of Investee Corporation's income (or loss) as revenue (or expense), as well as any amortization of excess cost.
d. Purchaser Corporation also recognizes its share of the investee's other comprehensive income.
e. all of the above
D
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In a proposal designed to persuade clients to order surge protection equipment from your company, the close should
A) outline the report's key findings. B) include your analysis of the data you've presented. C) describe the action(s) you would like readers to take. D) answer the questions that led to the report. E) tell readers why they will regret not making a purchase.
Firms can elect the fair value option for the following items: (1) bonds held to maturity, (2) available-for-sale securities, and (3) cash flow hedges. Which of the following is/are true?
a. Applying the fair value option to investments in debt securities classified as held to maturity results in accounting for the investments as if they were a trading security, with changes in fair value recognized in income each period. b. Applying the fair value option to available-for-sale securities results in reporting unrealized gains and losses from remeasurement to fair value in net income as fair value changes, instead of initially in other comprehensive income. c. Applying the fair value option to cash flow hedges results in reporting unrealized gains and losses from remeasurement to fair value in net income as fair value changes, instead of initially in other comprehensive income. d. all of the above e. none of the above
A good marketing planning establishes specific objectives and targets, laying the foundation to
successful execution of the plan. Indicate whether the statement is true or false
Pronoun agreement means that the pronoun matches its antecedent in singular or plural form
Indicate whether the statement is true or false