1, from consolidation perspective, the most important classification we need to focus on is

A.How many legal entities remain

B.Whether the acquisition is through capital stock or asset.

C.Whether the ownership is 100%

D.Whether the consideration given is 100% cash

In the case when investee is dissolved after acquisition, the "one big journal entry" I keep mentioning in the lecture needs to record all the followingexcept.

A."What you acquired in fair value"

B."What you paid in fair value"

C.Goodwill when B>A or Gain on Bargain purchase when A>B

D.Excess amortization for the first year

We need to debit which accounts for (1) Direct Costs of the acquisition (attorneys, appraisers, accountants, investment bankers, etc.)and (2) Costs to register and issue securities related to the acquisition

A.(1) Professional Service Cost and (2) Professional Service Cost

B.(1) Professional Service Cost and (2) Additional Paid-in Capital

C.(1) Additional Paid-in Capital and (2) Professional Service Cost

D.(1) Additional Paid-in Capital and (2) Additional Paid-in Capital

According to the example we covered in class, which of the following accounts reports zero ending balance in theconsolidatedbalance sheet?

A.Revenues

B.Expenses

C.Investment

D.Retained Earnings

I discussed both the formula and consolidation worksheet approaches. Which one did I mention is the more favorable approach in an exam setting when time and information is limited?

A.Formula

B.Worksheet

C.Neither

D.Both are the same