When an investor purchases sufficient common stock to gain significant influence over the investee, what is the proper accounting treatment of any excess of cost over book value acquired?
a. The excess remains in the asset account until the investment is sold.
b. The excess is immediately charged to expense in the period in which the investment is made.
c. The excess is amortized over the period of time that is reasonable in light of the underlying cause of the excess.
d. The excess is charged to retained earnings at the time the investor resells the common stock.
C
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The Fed uses ____ monetary policy to cause the economy to grow faster in the short run. A(n) ____ in the money supply is an example of such a policy.
A. expansionary; decrease B. expansionary; increase C. contractionary; increase D. contractionary; decrease
Answer the following statements true (T) or false (F)
1. Putting an end to servant leadership is a change that is likely to improve manager-employee relationships. 2. The four areas in which change is most apt to be needed are people, technology, structure, and strategy. 3. People changes in an organization are not required until that organization reaches about 20 people in size, when the level of specialization reaches a critical point. 4. In the context of change, technology refers to computer technology used to gain a competitive advantage.
Market skimming pricing makes sense under all the following conditions, EXCEPT if ________
A) a sufficient number of buyers have a high current demand B) the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear C) the high initial price does not attract more competitors to the market D) consumers are likely to delay buying the product until its price drops E) the high price communicates the image of a superior product
A(n) ________ has two crossbars that sit perpendicularly on a pedestal.
A. feature fixture B. gondola C. straight rack D. rounder E. end cap