Solutions For Advanced Accounting, 5th Edition Hamlen (All Chapters included)

Advanced Accounting,
5th Edition
by Susan S. Hamlen




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Complete Chapter Solutions Manual are




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included (Ch 1 to 16)




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** Immediate Download
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** Swift Response ✅
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** All Chapters included
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, 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




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2. a




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$29,000 – $26,000 = $3,000

3. a

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$207,544 – [(6% x $200,000) – (4% x $207,544)] = $203,846
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4. d
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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
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(1) $81,000 – ($100,000 – $25,000) = $6,000 unrealized gain
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5. d

$5,000,000 + [40% x ($600,000 – $200,000)] = $5,160,000
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6. b




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,7. b

Reported net income; 35% x $7,000,000 = $ 2,450,000
Less unconfirmed profit on ending inventory
35% x [$6,000,000 – ($6,000,000/1.25)] = (420,000)
Equity in net income $ 2,030,000
Less dividends; 35% x $2,000,000 (700,000)
Plus beginning investment balance 50,000,000
Ending investment balance $51,330,000

8. d




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Fizzy’s entry to record the acquisition is:




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Current assets 25,000
Property 2,500,000
Goodwill 25,475,000
Liabilities
Cash IE 3,000,000
25,000,000
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9. b
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10. a

11. b
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The entry to record the sale is:
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Cash 410,000
Loss on sale of AFS securities 15,000
Investment in AFS securities 400,000
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Other comprehensive income 25,000
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The reclassification of the loss increases OCI, and the loss reported in income is the
difference between the original cost ($400,000 + $25,000) and sales proceeds ($410,000).

12. b

$285,000 - $300,000 = $15,000 loss




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, 13. d

Investment balance at the beginning of 2023 is $203,883 (=$205,768 – ($6,000 – (2% x
$205,768)); 2% x $203,883 = $4,078

14. c

Investment balance at the end of 2022 is $203,827 (=$205,657 – ($8,000 – (3% x
$205,657)); $190,000 - $203,827 = $13,827 loss

15. c




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$510,000 - $500,000 = $10,000; unrealized gains are reported in income.




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16. b




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The basis difference is $180,000 (=$3,000,000 – (30% x $9,400,000))
(30% x $100,000) – $180,000/10 = $12,000

17. d


($2,400,000 - $2,000,000) x 40% =
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Investment balance, beginning of 2020 $10,000,000
160,000
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($150,000 - $200,000) x 40% = (20,000)
($60,000 + $10,000 - $25,000) x 40% = 18,000
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Investment balance, end of 2025 $10,158,000

18. b
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$10,000,000 – ($400,000 + $5,000,000 - $6,000,000) = $10,600,000
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19. c

$25,000,000 – ($500,000 + $8,000,000 + $1,000,000 - $6,000,000) = $21,500,000
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20. c
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