Fundamentals of Advanced

For All Chapters à Downloaded by Better Health () Student name: MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) At the date of an acquisition which is not a bargain purchase, the acquisition method A) Consolidates the subsidiary’s assets at fair value and the liabilities at book value. B) Consolidates all subsidiary assets and liabilities at book value. C) Consolidates all subsidiary assets and liabilities at fair value. D) Consolidates current assets and liabilities at book value, and long-term assets and liabilities at fair value. E) Consolidates the subsidiary’s assets at book value and the liabilities at fair value. 2) In an acquisition where 100% control is acquired, how would the land accounts of the parent and the land accounts of the subsidiary be reported on consolidated financial statements? Parent Subsidiary A) Book Value Book Value B) Book Value Fair Value C) Fair Value Fair Value D) Fair Value Book Value E) Cost Cost A) Option A. B) Option B. C) Option C. D) Option D. E) Option E.