Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle (All
Chapters , 100% Original Verified, A+ Grade)
This is The Only Test Bank Advanced Accounting, 14e Joe Ben
HoyleAll Other Files in The Market are Fake/Old/Wrong Edition.
The Textbook This Document Fully Covers
Advanced Accounting, 14e Joe Ben Hoyle
• Publisher : McGraw Hill
• Publication date : January 6, 2020
• Edition : 14th
• Language : English
• Print length : 992 pages
• ISBN-10 : 1260247821
• ISBN-13 : 978-1260247824
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
, Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
Advanced
Accounting, 14e
Joe Ben Hoyle
(Test Bank All
Chapters
Download)
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
, Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
Chapter 1
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Baker Company owns 15% of the common stock of Charlie Corporation and used the
fair-value method to account for this investment. Charlie reported net income of $120,000 for
2021 and paid dividends of $70,000 on October 1, 2021. How much income should Baker
recognize on this investment in 2021?
A) $18,000.
B) $10,500.
C) $28,500.
D) $7,500.
E) $50,000.
2) Loeffler Company owns 35% of the common stock of Tetter Co. and uses the equity
method to account for the investment. During 2021, Tetter reported income of $260,000 and paid
dividends of $90,000. There is no amortization associated with the investment. During 2021,
how much income should Loeffler recognize related to this investment?
A) $90,000.
B) $91,000.
C) $122,500.
D) $31,500.
E) $59,500.
3) On January 1, 2021, Lee Company paid $1,870,000 for 80,000 shares of Thomas Co.’s
voting common stock which represents a 45% investment. No allocation to goodwill or other
specific account was necessary. Significant influence over Thomas was achieved by this
acquisition. Thomas distributed a dividend of $2.00 per share during 2021 and reported net
income of $720,000. What was the balance in the Investment in Thomas Co. account found in the
financial records of Lee as of December 31, 2021?
Version 1 1
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
, Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
A) $2,114,000.
B) $2,194,000.
C) $2,354,000.
D) $2,158,000.
E) $2,034,000.
4) A necessary condition to use the equity method of reporting for an equity investment is
that the investor company must
A) have the ability to exercise significant influence over the operating and financial
policies of the investee.
B) own at least 30% of the investee's voting stock.
C) possess a controlling interest in the investee's voting stock.
D) not have the ability to exercise significant influence over the operating and financial
policies of the investee.
5) On January 1, 2019, Dermot Company purchased 15% of the voting common stock of
Horne Corp. On January 1, 2021, Dermot purchased 28% of Horne’s voting common stock. If
Dermot achieves significant influence with this new investment, how must Dermot account for
the change to the equity method?
A) It must use the equity method for 2021 but should make no changes in its financial
statements for 2020 and 2019.
B) It should prepare consolidated financial statements for 2021.
C) It must restate the financial statements for 2020 and 2019 as if the equity method had
been used for those two years.
D) It should record a prior period adjustment at the beginning of 2021 but should not
restate the financial statements for 2020 and 2019.
E) It must restate the financial statements for 2020 as if the equity method had been
used then.
Version 1 2
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle (All
Chapters , 100% Original Verified, A+ Grade)
This is The Only Test Bank Advanced Accounting, 14e Joe Ben
HoyleAll Other Files in The Market are Fake/Old/Wrong Edition.
The Textbook This Document Fully Covers
Advanced Accounting, 14e Joe Ben Hoyle
• Publisher : McGraw Hill
• Publication date : January 6, 2020
• Edition : 14th
• Language : English
• Print length : 992 pages
• ISBN-10 : 1260247821
• ISBN-13 : 978-1260247824
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
, Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
Advanced
Accounting, 14e
Joe Ben Hoyle
(Test Bank All
Chapters
Download)
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
, Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
Chapter 1
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Baker Company owns 15% of the common stock of Charlie Corporation and used the
fair-value method to account for this investment. Charlie reported net income of $120,000 for
2021 and paid dividends of $70,000 on October 1, 2021. How much income should Baker
recognize on this investment in 2021?
A) $18,000.
B) $10,500.
C) $28,500.
D) $7,500.
E) $50,000.
2) Loeffler Company owns 35% of the common stock of Tetter Co. and uses the equity
method to account for the investment. During 2021, Tetter reported income of $260,000 and paid
dividends of $90,000. There is no amortization associated with the investment. During 2021,
how much income should Loeffler recognize related to this investment?
A) $90,000.
B) $91,000.
C) $122,500.
D) $31,500.
E) $59,500.
3) On January 1, 2021, Lee Company paid $1,870,000 for 80,000 shares of Thomas Co.’s
voting common stock which represents a 45% investment. No allocation to goodwill or other
specific account was necessary. Significant influence over Thomas was achieved by this
acquisition. Thomas distributed a dividend of $2.00 per share during 2021 and reported net
income of $720,000. What was the balance in the Investment in Thomas Co. account found in the
financial records of Lee as of December 31, 2021?
Version 1 1
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
, Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
A) $2,114,000.
B) $2,194,000.
C) $2,354,000.
D) $2,158,000.
E) $2,034,000.
4) A necessary condition to use the equity method of reporting for an equity investment is
that the investor company must
A) have the ability to exercise significant influence over the operating and financial
policies of the investee.
B) own at least 30% of the investee's voting stock.
C) possess a controlling interest in the investee's voting stock.
D) not have the ability to exercise significant influence over the operating and financial
policies of the investee.
5) On January 1, 2019, Dermot Company purchased 15% of the voting common stock of
Horne Corp. On January 1, 2021, Dermot purchased 28% of Horne’s voting common stock. If
Dermot achieves significant influence with this new investment, how must Dermot account for
the change to the equity method?
A) It must use the equity method for 2021 but should make no changes in its financial
statements for 2020 and 2019.
B) It should prepare consolidated financial statements for 2021.
C) It must restate the financial statements for 2020 and 2019 as if the equity method had
been used for those two years.
D) It should record a prior period adjustment at the beginning of 2021 but should not
restate the financial statements for 2020 and 2019.
E) It must restate the financial statements for 2020 as if the equity method had been
used then.
Version 1 2
Test Bank For Advanced Accounting, 14e Joe Ben Hoyle
