Advanced Accounting, 5th Edition
@W @W @W
by Susan S. Hamlen
@W @W @W @W
, CHAPTER 1
SOLUTIONS TO MULTIPLE CHOICE QUESTIONS, EXERCISES AND PROBLEMS
MULTIPLE CHOICE QUESTIONS
1. c
$180,000 - $160,000 = $20,000
$125,000 - $100,000 = 25,000
Total gain $45,000
2. a
$29,000 – $26,000 = $3,000
3. a
$207,544 – [(6% x $200,000) – (4% x $207,544)] = $203,846
4. d
Reclassification of unrealized loss on AFS securities sold $1,000 credit
Unrealized gain on AFS securities held at year-end 6,000 credit (1)
Total amount reported in OCI $7,000 credit
(1) $81,000 – ($100,000 – $25,000) = $6,000 unrealized gain
5. d
$5,000,000 + [40% x ($600,000 – $200,000)] = $5,160,000
6. b
,7. b
Reported @Wnet @Wincome; @W35% @Wx @W$7,000,000 @W= $
@W2,450,000 @W Less @W unconfirmed @W profit @W on @W ending
@W inventory
35% @Wx @W[$6,000,000 @W– @W($6,000,000/1.25)] @W= (420,000)
Equity @Win @Wnet @Wincome $ @ W 2,030,000
Less @Wdividends; @W35% @Wx @W$2,000,000 (700,000)
Plus @ W beginning @ W investment @ W balance @ W 50,000,000
Ending @ W investment @ W balance $51,330,000
8. d
Fizzy’s @Wentry @Wto @Wrecord @Wthe @Wacquisition @Wis:
Current @ W assets 25,000
Property 2,500,000
Goodwill 25,475,000
Liabilities 3,000,000
Cash 25,000,000
9. b
10. a
11. b
The @Wentry @Wto @Wrecord @Wthe @Wsale @Wis:
Cash 410,000
Loss @Won @Wsale @Wof @WAFS @Wsecurities 15,000
Investment @Win @WAFS @Wsecurities 400,000
Other @ W comprehensive @ W income 25,000
The @Wreclassification @Wof @Wthe @Wloss @Wincreases @WOCI, @Wand @Wthe @Wloss @Wreported @Win
@W income @Wis @W the @W difference @Wbetween @Wthe @Woriginal @Wcost @W($400,000 @W+ @W$25,000)
@Wand @Wsales @Wproceeds @W($410,000).
12. b
$285,000 @W- @W$300,000 @W= @W$15,000 @Wloss
, 13. d
Investment @Wbalance @Wat @Wthe @Wbeginning @Wof @W2023 is @W$203,883
@W @W (=$205,768 – @W($6,000
@W
@W(2% @Wx
$205,768)); @W2% @Wx @W$203,883 @W= @W$4,078
14. c
Investment @Wbalance @Wat @Wthe @Wend @Wof @W2022 @Wis @W$203,827 @W(=$205,657 @W– @W($8,000 @W– @W(3% @Wx
$205,657)); @W$190,000 @W- @W$203,827 @W= @W$13,827 @Wloss
15. c
$510,000 @W- @W$500,000 @W= @W$10,000; @Wunrealized @Wgains @Ware @Wreported @Win @Wincome.
16. b
The @Wbasis @Wdifference @Wis @W$180,000 @W(=$3,000,000 @W– @W(30% @Wx
@W$9,400,000)) @W (30% @W x @W $100,000) @W – @W $180,000/10 @W = @W $12,000
17. d
Investment @Wbalance, @Wbeginning @Wof @W2020
@ W $10,000,000 @W ($2,400,000 @W - @W $2,000,000) @W x
@W 40% @W = 160,000
@W($150,000 @W - @W $200,000) @W x @W 40% @W = (20,000)
@W($60,000 @W + @W $10,000 @W - @W$25,000) @W x @W40% @W=
@ W @ W 18,000
Investment @Wbalance, @Wend @Wof @W2025 $10,158,000
18. b
$10,000,000 @W– @W($400,000 @W+ @W$5,000,000 @W- @W$6,000,000) @W= @W$10,600,000
19. c
$25,000,000 @W– @W($500,000 @W+ @W$8,000,000 @W+ @W$1,000,000 @W- @W$6,000,000) @W= @W$21,500,000
20. c
@W @W @W
by Susan S. Hamlen
@W @W @W @W
, CHAPTER 1
SOLUTIONS TO MULTIPLE CHOICE QUESTIONS, EXERCISES AND PROBLEMS
MULTIPLE CHOICE QUESTIONS
1. c
$180,000 - $160,000 = $20,000
$125,000 - $100,000 = 25,000
Total gain $45,000
2. a
$29,000 – $26,000 = $3,000
3. a
$207,544 – [(6% x $200,000) – (4% x $207,544)] = $203,846
4. d
Reclassification of unrealized loss on AFS securities sold $1,000 credit
Unrealized gain on AFS securities held at year-end 6,000 credit (1)
Total amount reported in OCI $7,000 credit
(1) $81,000 – ($100,000 – $25,000) = $6,000 unrealized gain
5. d
$5,000,000 + [40% x ($600,000 – $200,000)] = $5,160,000
6. b
,7. b
Reported @Wnet @Wincome; @W35% @Wx @W$7,000,000 @W= $
@W2,450,000 @W Less @W unconfirmed @W profit @W on @W ending
@W inventory
35% @Wx @W[$6,000,000 @W– @W($6,000,000/1.25)] @W= (420,000)
Equity @Win @Wnet @Wincome $ @ W 2,030,000
Less @Wdividends; @W35% @Wx @W$2,000,000 (700,000)
Plus @ W beginning @ W investment @ W balance @ W 50,000,000
Ending @ W investment @ W balance $51,330,000
8. d
Fizzy’s @Wentry @Wto @Wrecord @Wthe @Wacquisition @Wis:
Current @ W assets 25,000
Property 2,500,000
Goodwill 25,475,000
Liabilities 3,000,000
Cash 25,000,000
9. b
10. a
11. b
The @Wentry @Wto @Wrecord @Wthe @Wsale @Wis:
Cash 410,000
Loss @Won @Wsale @Wof @WAFS @Wsecurities 15,000
Investment @Win @WAFS @Wsecurities 400,000
Other @ W comprehensive @ W income 25,000
The @Wreclassification @Wof @Wthe @Wloss @Wincreases @WOCI, @Wand @Wthe @Wloss @Wreported @Win
@W income @Wis @W the @W difference @Wbetween @Wthe @Woriginal @Wcost @W($400,000 @W+ @W$25,000)
@Wand @Wsales @Wproceeds @W($410,000).
12. b
$285,000 @W- @W$300,000 @W= @W$15,000 @Wloss
, 13. d
Investment @Wbalance @Wat @Wthe @Wbeginning @Wof @W2023 is @W$203,883
@W @W (=$205,768 – @W($6,000
@W
@W(2% @Wx
$205,768)); @W2% @Wx @W$203,883 @W= @W$4,078
14. c
Investment @Wbalance @Wat @Wthe @Wend @Wof @W2022 @Wis @W$203,827 @W(=$205,657 @W– @W($8,000 @W– @W(3% @Wx
$205,657)); @W$190,000 @W- @W$203,827 @W= @W$13,827 @Wloss
15. c
$510,000 @W- @W$500,000 @W= @W$10,000; @Wunrealized @Wgains @Ware @Wreported @Win @Wincome.
16. b
The @Wbasis @Wdifference @Wis @W$180,000 @W(=$3,000,000 @W– @W(30% @Wx
@W$9,400,000)) @W (30% @W x @W $100,000) @W – @W $180,000/10 @W = @W $12,000
17. d
Investment @Wbalance, @Wbeginning @Wof @W2020
@ W $10,000,000 @W ($2,400,000 @W - @W $2,000,000) @W x
@W 40% @W = 160,000
@W($150,000 @W - @W $200,000) @W x @W 40% @W = (20,000)
@W($60,000 @W + @W $10,000 @W - @W$25,000) @W x @W40% @W=
@ W @ W 18,000
Investment @Wbalance, @Wend @Wof @W2025 $10,158,000
18. b
$10,000,000 @W– @W($400,000 @W+ @W$5,000,000 @W- @W$6,000,000) @W= @W$10,600,000
19. c
$25,000,000 @W– @W($500,000 @W+ @W$8,000,000 @W+ @W$1,000,000 @W- @W$6,000,000) @W= @W$21,500,000
20. c
