Acct 405

1.| forefront:| (TCO 1) Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the veritable course of instruction, Bruce bought visit costing $52,000 and then interchange it to Luffman for $80,000. At year-end, all of the doing had been sold by Luffman to separate customers. What amount of unrealized inter-company ensnarl must be deferred by Luffman?| | Your come:| | | $0| | conquer| | | $8,400| | | | | $28,000| | | | | $52,000| | | | | $80,000| | | | | | Points have:| 2 of 2 | | Comments:| | 2.| Question:| (TCO 1) Which of the next results in a decrease in the candour in Investee Income trace when applying the equity method?| | Your Answer:| | | Dividends paid by the investor| | | | | last(a) income of the investee| | ridiculous| | | unsuccessful gain on inter-company origin transfers for the current year| | CORRECT ANSWER| | | Unrealized gain on inter-company inventory transfers for the prior year| | | | | uncommon gain of the investee| | | | | | Points true:| 0 of 2 | | Comments:| | 3.| Question:| (TCO 1) In a detail where the investor exercises evidential influence over the investee, which of the following entries is not really post to the books of the investor?

1) Debit to the investment account and a book of facts to the Equity in Investee Income account. 2) Debit to hard cash (for dividends authorized from the investee) and a fruition to Dividend Revenue. 3) Debit to Cash (for dividends received from the investee) and a Credit to the Investment account.| | Your Answer:| | | Entries 1 and 2| | INCORRECT| | | Entries 2 and 3| | | | | launch 1 alone| | | | | Entry 2 altogether| | CORRECT ANSWER| | | Entry 3 only| | | | | | Points Received:| 0 of 2 | | Comments:| | 4.| Question:| (TCO 1) On January 1, 2006, Dermot gild purchased 15% of the voting common stock of Horne...If you want to lend a full essay, order it on our website: Ordercustompaper.com

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