Solution Manual for Advanced Accounting 5th Edition by Hamlen (Latest 2025/2026 Verified Update)

Advanced Accounting, 5th Edition by Susan S. Hamlen

, 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 Onet Oincome; O35% Ox O$7,000,000 O= $
O2,450,000 OLess Ounconfirmed Oprofit Oon Oending Oinventory

35% Ox O[$6,000,000 O– O($6,000,000/1.25)] O= (420,000)
Equity Oin Onet Oincome $ O 2,030,000
Less Odividends; O35% Ox O$2,000,000 (700,000)
Plus O beginning O investment O balance O 50,000,000

Ending O investment O balance $51,330,000

8. d

Fizzy’s Oentry Oto Orecord Othe Oacquisition Ois:

Current O 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 Oentry Oto Orecord Othe Osale Ois:

Cash 410,000
Loss Oon Osale Oof OAFS Osecurities 15,000
Investment Oin OAFS Osecurities 400,000
Other O comprehensive O income 25,000
The Oreclassification Oof Othe Oloss Oincreases OOCI, Oand Othe Oloss Oreported Oin Oincome Ois
Othe Odifference Obetween Othe Ooriginal Ocost O($400,000 O+ O$25,000) Oand Osales Oproceeds

O($410,000).



12. b

$285,000 O- O$300,000 O= O$15,000 Oloss

, 13. d

Investment Obalance Oat Othe Obeginning Oof O2023 Ois O$203,883 O(=$205,768 O– O($6,000 O– O(2% Ox
$205,768)); O2% Ox O$203,883 O= O$4,078

14. c

Investment Obalance Oat Othe Oend Oof O2022 Ois O$203,827 O(=$205,657 O– O($8,000 O– O(3% Ox
$205,657)); O$190,000 O- O$203,827 O= O$13,827 Oloss

15. c

$510,000 O- O$500,000 O= O$10,000; Ounrealized Ogains Oare Oreported Oin Oincome.

16. b

The Obasis Odifference Ois O$180,000 O(=$3,000,000 O– O(30% Ox
O$9,400,000)) O(30% Ox O$100,000) O– O$180,000/10 O= O$12,000



17. d

Investment Obalance, Obeginning Oof O2020
O $10,000,000 O($2,400,000 O- O$2,000,000) Ox O40% O=

160,000
O($150,000 O- O$200,000) Ox O40% O= (20,000)
O($60,000 O+ O$10,000 O- O$25,000) Ox O40% O=

O O 18,000

Investment Obalance, Oend Oof O2025 $10,158,000

18. b

$10,000,000 O– O($400,000 O+ O$5,000,000 O- O$6,000,000) O= O$10,600,000

19. c

$25,000,000 O– O($500,000 O+ O$8,000,000 O+ O$1,000,000 O- O$6,000,000) O= O$21,500,000

20. c