1. On 1/1/2017 Assume that Hello Corp. acquired 25% of the ordinary shares of HHH Corp for $300,000 During 2017, HHH Corp. reported net income of $160,000 and paid total dividends $60,000. If HELLO CORP uses the equity method to account for its investment, the balance in the investment account on December 31, 2017, will be Select one: 

a. 400,000 

b. 300,000 

c. 340,000 

d. 325,000.

2. To close a partner’s drawings account, an entry must be made that: 

Select one: 

a. debits that partner’s drawings account and credits that partner’s capital account 

b. debits that partner’s drawings account and credits income summary 

c. No entry 

d. credits that partner’s drawings account and debit that partner’s capital account. 

3. XYZ Company receives net proceeds of $39,500 on the sale of share investments that cost $42,000. This transaction will result in reporting in the income statement 

Select one: 

a. loss 39500 

b. gain 39500 

c. loss 2500 

d. gain 2500.

4. Preference shares may have priority over ordinary shares except in: 

Select one: 

a. Voting. 

b. Cumulative dividend features. 

c. Dividends 

d. Assets in the event of liquidation. 

5. When the non-cash property is invested in a partnership, the non-cash property recorded according to: 

Select one: 

a. The book value 

b. Historical value 

c. Fair value

d. Conversion the non-cash property to cash.

Answer rating: 100% (QA)

ANSWER Answer 1 Correct option is d 325000 Cost of 25 common stock acquired of HHH Corp 300000 Reven... View the full answer