Question 55

The parent, with controlling interest, has the option but is not required to consolidate 100 percent of subsidiary's information

True

False

Question 6

The acquisition method requires the subsidiary be valued at the acquisition-date book value

True

False

Question 7

Allocation of goodwill acquired should be across the controlling interests only

True

False

Question 8

When a bargain purchase occurs the controlling parent should

Book negative goodwill

Recognize the gain in income

Both of these

Neither of these

Question 9

The excess over book value paid for its share of the investee's tangible long-lived assets is depreciated

True

False

Question 10

Consolidated net income is allocated to the parent company only and note the noncontrolling interests

True

False

Question 11

The acquisition method incorporates 100 percent of the subsidiarys assets and liabilities at their acquisition-date fair values

True

False

Question 12

If the total fair value of the acquired firm is less than the identifiable net assets the difference is goodwill

True

False

Question 13

Subsequent to acquisition, changes in current fair values for assets and liabilities are recognized as income

True

False