ASAP!!

Multiple choice :

A)

The followig intercompany tr Please look at the test

during the year:

(a) Parent loaned $12500 to Sub. To keep things simple, assume that there is no interest revenue or interest expense associated with this loan

(b) Parent made a sale to Sub for $13000 cash The inventory had originally cost Parent $12220 Sub then sold that same inventory to an outsider for $140.

What consolidation worksheet entries would you make?

B)

A U.S. company acquired 10,000 from its bank on January 1, 2014, for use in future purchases from German Companies. The direct exchange rate is $ 1.25 = 1. On July 1, 2014, the exchange rate is $ 1.20 = 1. Prepare journal entry on both the dates.

C)

Assume that on December 31, 2019, Parents Investment in Subsidiary account has a balance of $ 532,000. Also assume that Parents 80% interest in Subsidiary has a fair value of $600,000. On January 1, 2020, Parent sells half (remaining 40%) of Subsidiarys shares for $375,000.

How should Parent account for this transaction? Pass Journal Entry.

D)

Prince Inc. acquired 100% of Sultan Inc. outstanding common stock. What conclusion you do you get from this statement. This is a case of

1. Partially owned subsidiaries

2. Subsidiary acquired at less than book value

3. Subsidiaries acquired at more than book value

4. Wholly owned subsidiaries