TEST BANK For Advanced Financial Accounting 13th Edition By Theodore Christensen Chapter 1 - 20 |Complete Newest Version|newest edition 2025/26|ISBN:9781260772135

SOLUTIONS TEST BANK FOR :
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Advanced Financial Accounting 13th Edition By The
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odore Christensen
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PDF download ……
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,Chapter 1 Intercorporate Acquisitions and Investments in Other Entities
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1) Assuming no impairment in value prior to transfer, assets transferred by a parent company to a
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nother entity it has created should be recorded by the newly created entity at the assets':
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A) cost to the parent company.
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B) book value on the parent company's books at the date of transfer.
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C) fair value at the date of transfer.
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D) fair value of consideration exchanged by the newly created entity.
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Answer: B Difficul c v cv



ty: 1 Easy
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Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities Learni
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ng Objective:
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01 Understand and explain the reasons for and different methods of business expansion, the typ
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es of organizational structures, and the types of acquisitions.; 01-
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03 Make calculations and prepare journal entries for the creation of a business entity.
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Bloom's:
Remember AACSB c v



:
Reflective Thinking cv cv cv



AICPA: FN Decision Making cv cv




2) Given the increased development of complex business structures, which of the following r
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egulators is responsible for the continued usefulness of accounting reports?
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A) Securities and Exchange Commission (SEC) cv cv cv cv



B) Public Company Accounting Oversight Board (PCAOB)
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C) Financial Accounting Standards Board (FASB) cv cv cv cv



D) All of the other answers are correct
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Answer: D Difficul c v cv



ty: 1 Easy
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Topic: An Introduction to Complex Business Structures cv cv cv cv cv



Learning Objective: 01- cv



01 Understand and explain the reasons for and different methods of business expansion, the ty
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pes of organizational structures, and the types of acquisitions.
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Bloom's:
Remember AACSB c v



:
Reflective Thinking cv cv cv



AICPA: FN Reporting cv




3) A business combination in which the acquired company's assets and liabilities are combined
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with those of the acquiring company into a single entity is defined as:
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A) Stock acquisition cv



B) Leveraged buyout cv



C) Statutory Merger cv



D) Reverse statutory rollup cv cv

,Answer: C Difficul c v cv



ty: 1 Easy
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Topic: Organizational Structure and Financial Reporting cv cv cv cv



Learning Objective: 01- cv



04 Understand and explain the differences between different forms of business combinations.
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Bloom's:
Remember AACSB c v



:
Reflective Thinking cv cv cv



AICPA: FN Decision Making cv cv




4) In which of the following situations do accounting standards not require that the financial
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statements of the parent and subsidiary be consolidated?
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A) A corporation creates a new 100 percent owned subsidiary
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B) A corporation purchases 90 percent of the voting stock of another company
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C) A corporation has both control and majority ownership of an unincorporated company
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D) A corporation owns less-than a controlling interest in an unincorporated company
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Answer: D Difficul c v cv



ty: 1 Easy
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Topic: Organizational Structure and Financial Reporting cv cv cv cv



Learning Objective: 01- cv



01 Understand and explain the reasons for and different methods of business expansion, the ty
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pes of organizational structures, and the types of acquisitions.
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Bloom's:
Remember AACSB c v



:
Reflective Thinking cv cv cv



AICPA: FN Decision Making cv cv




During its inception, Devon Company purchased land for $100,000 and a building for $180,000.
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After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, R
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egan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straigh
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t-
line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal re
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vealed that the building has a fair value of $200,000.
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5) Based on the information provided, at the time of the transfer, Regan Company should record:
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A) Building at $180,000 and no accumulated depreciation. cv cv cv cv cv cv



B) Building at $162,000 and no accumulated depreciation. cv cv cv cv cv cv



C) Building at $200,000 and accumulated depreciation of $24,000.
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D) Building at $180,000 and accumulated depreciation of $18,000.
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Answer: D Difficul c v cv



ty: 2 Medium
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Topic:
Valuation of Business Entities; Accounting for Internal Expansion: Creating Business cv cv cv cv cv cv cv cv cv cv



Entities
Learning Objective: 01- cv



04 Understand and explain the differences between different forms of business combinations.; 01
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-03 Make calculations and prepare journal entries for the creation of a business entity.
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, Bloom's:
Understand AACSB:
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Analytical Thinking
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AICPA: FN Measurement
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