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Advanced Accounting 12th Edition Beams Test Bank
Advanced Accounting 12th Edition Beams Test Bank
Advanced Accounting 12th Edition Beams Test Bank
5) Pinkerton Inc. owns 10% of Sable Company. In the most recent year, Sable had net earnings of $40,000
and paid dividends of $6,000. Pinkerton's accountant mistakenly assumed Pinkerton had considerable
influence over Sable and used the equity method instead of the cost method. What is the impact on the
investment account and net earnings, respectively?
A) By using the equity method, the accountant has understated the investment account and overstated
the net earnings.
B) By using the equity method, the accountant has overstated the investment account and understated the
net earnings.
C) By using the equity method, the accountant has understated the investment account and understated
the net earnings.
D) By using the equity method, the accountant has overstated the investment account and overstated the
net earnings.
Answer: D
Objective: LO3
Difficulty: Moderate
6) Griffon Incorporated holds a 30% ownership in Duck Corporation. Griffon should use the equity
method under which of the following circumstances?
A) Griffon has surrendered significant stockholder rights by agreement between Griffon and Duck.
B) Griffon has been unable to secure a position on the Duck Corporation's Board of Directors.
C) Griffon has inadequate or untimely information to apply the equity method.
D) The ownership of Duck Corporation is diverse.
Answer: D
Objective: LO1
Difficulty: Easy
7) Pond Corporation uses the fair value method of accounting for its investment in Swan Company.
Which one of the following events would affect the Investment in Swan Co. account?
A) Investee losses
B) Investee dividend payments
C) An increase in the investee's share price from last period
D) All of the above would affect the Investment in Swan Co. account.
Answer: C
Objective: LO2
Difficulty: Easy
2
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8) Sadie Corporation's stockholders' equity at December 31, 2013 included the following:
Pilga Corporation purchased a 30% interest in Sadie's common stock from other shareholders on January
1, 2014 for $5,800,000. What was the book value of Pilga's investment in Sadie on January 1, 2014?
A) $5,400,000
B) $5,700,000
C) $7,120,000
D) $7,440,000
Answer: A
Explanation: A)
Total stockholders' equity $19,000,000
Less: preferred equity (1,000,000)
Equals: common equity 18,000,000
× Pilga's percentage × 30%
Book value of Pilga investment $5,400,000
Objective: LO5
Difficulty: Moderate
3
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9) Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2013 for
$300,000. This investment was accounted for using the complete equity method and the correct balance in
the Investment in Fish account on December 31, 2015 was $440,000. The original excess purchase
transaction included $60,000 for a patent amortized at a rate of $6,000 per year. In 2016, Fish Corporation
had net income of $4,000 per month earned uniformly throughout the year and paid $20,000 of dividends
in May. If Jabiru sold one-half of its investment in Fish on August 1, 2016 for $500,000, how much gain
was recognized on this transaction?
A) $278,950
B) $280,000
C) $280,950
D) $282,000
Answer: C
Explanation: C)
Dec 31, 2015 investment balance $440,000
Jabiru's interest in Fish's income from Jan 1-July 31:
($4,000 × 7 months × 20%) = 5,600
Less: Dividends ($20,000 × 20%) = (4,000)
Less: Seven months of patent amortization:
$500 × 7 = (3,500)
Investment account balance at July 31, 2016 $438,100
10) An investor uses the cost method of accounting for its investment in common stock. During the
current year, the investor received $25,000 in dividends, an amount that exceeded the investor's share of
the investee company's undistributed income since the investment was acquired. The investor should
report dividend income of what amount?
A) $25,000
B) $25,000 less the amount in excess of its share of undistributed income since the investment was
acquired
C) $25,000 less the amount that is not in excess of its share of undistributed income since the investment
was acquired
D) None of the above is correct.
Answer: A
Objective: LO3
Difficulty: Easy
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Copyright © 2015 Pearson Education, Inc.
Another random document with
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The Project Gutenberg eBook of The Y. M. C. A. boys
on Bass Island
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Language: English
BY
BROOKS HENDERLEY
Author of “The Y. M. C. A. Boys of Cliffwood,” Etc.
ILLUSTRATED
NEW YORK
By
BROOKS HENDERLEY
12mo. Cloth. Illustrated.
Price per volume, 60 cents, postpaid.
CHAPTER PAGE
I. THE SCRUB BALL TEAMS 1
II. AN INVASION OF PIGS 10
III. THE BOY WHO HAD PROMISED 19
IV. MR. NOCKER SPRINGS A SURPRISE 32
V. A BRIGHT PROSPECT AHEAD 40
VI. MAKING CAMP ON BASS ISLAND 47
VII. IN THE GRIP OF THE SQUALL 56
VIII. THE FIRST NIGHT OUT 63
IX. THE RULE OF ORDER AND DISCIPLINE 72
X. THINGS BEGIN TO VANISH 79
XI. MR. HOLWELL GETS THE WELCOMING CHEER 86
XII. HAPPENINGS OF THE SECOND NIGHT 96
XIII. THE MYSTERY GROWS DEEPER 103
XIV. TRYING TO FIGURE IT OUT 115
XV. DAN TELLS SOME WHOLESOME TRUTHS 123
XVI. WAS IT A WILD MAN OF THE WOODS? 129
XVII. DICK’S PROMISE 137
XVIII. SETTING THE TRAP 144
XIX. A DAY OF REST 148
XX. A MISSION OF MERCY 155
XXI. THE BROTHERLY SPIRIT 163
XXII. WHAT NAT SAW 169
XXIII. THE TELLTALE FOOTPRINT 178
XXIV. DAN’S NEW IDEA 188
XXV. THE BERRY PICKERS 199
XXVI. POACHING ON STRANGE PRESERVES 206
XXVII. A NEVER-TO-BE-FORGOTTEN CAMPFIRE 214
XXVIII. WHEN THE PIT TRAP WORKED 222
XXIX. CLEARING UP THE MYSTERY 231
XXX. BREAKING CAMP—CONCLUSION 239
THE Y. M. C. A. BOYS
ON BASS ISLAND
CHAPTER I
THE SCRUB BALL TEAMS
One night a week the boys comprising the Junior Department of the
local Y. M. C. A. held a meeting in the room in the building Cliffwood’s
citizens had presented to the organization that was doing so much good
work for young men in the community.
On certain afternoons they were also allowed free use of the
gymnasium. A comparatively new swimming pool was enjoyed by many
after they had exercised. Then there was a bowling alley, and some of the
more expert among the boys ran up pretty high scores.
On the night after the ball game on the commons and the fire at the
Bratton barn, the boys commenced gathering before the time appointed for
the special meeting to take place. Little knots talked seriously as they came
together, for it was known that Dick meant to bring with him a report of the
success or failure attending their efforts to secure the camping grounds
owned by a Mr. Marley on the small lake named after him.
“Some of you fellows,” Dan Fenwick was saying to a group around
him, “who didn’t happen to be at the ball game to-day will be interested to
know that Dick says we’re going to have a football eleven this fall, to try to
hold up the honor of Cliffwood with the rest of the towns around this end of
the woods.”
“Glad to hear that, Dan!” exclaimed one lad, warmly.
“Always said we ought to do something to show our colors,” added
another. “And it’s come all because of Mr. Howell and his scheme for
getting up this Boys’ Department of the Y. M. C. A. That’s done the trick!
You don’t run across many fellows loafing on the street corners these
nights. They’d rather be in here reading the magazines, or taking part in
some of the things that are going on every little while.”
“And there’s no reason,” a third went on to say, boldly, “why Cliffwood
shouldn’t have a hockey team, and a cracking good baseball nine next
season, to boot. We’ve got the stuff all right. With good backing we might
even hope to fetch a trophy home with us once in a while.”
“There’s Mr. Bartlett, going to call the meeting to order,” remarked Dan.
At this speech every one of the boys settled down in a seat; for these
meetings were usually conducted with as much decorum and order as those
carried on by the older members of the Y. M. C. A. organization.
Harry Bartlett usually presided at these gatherings of the boys’ club, but
he took pleasure in frequently turning the meeting over to Dick, who had
been duly elected to the office. This evening as soon as the meeting had
been called to order he asked Dick to take the chair.
The secretary was just beginning to call the roll when there came a
series of squeals and grunts. At the same time three small pigs were seen
running wildly about the room, creating much excitement as they darted
back and forth under the chairs and amidst the legs of twenty-odd boys
gathered there.
Every one knew that Nat and his two cronies had liberated the pigs, for
they were standing in the doorway and laughing heartily at the frantic
efforts of the boys to catch the dodging pigs. All thought of business was
suspended until this duty had been accomplished, after which the offending
pigs were summarily ejected from the building.
Nat pretended to feel sorry over it.
“We meant to lug the little critters over to Mr. Bratton’s house,” he went
on to explain, “to find out if he meant to offer a reward for their safe return.
But now they’re loose again, and in the night nobody could ever catch the
slippery imps. We were goin’ to stop in and let you know we’d be back this
way before long, when they broke loose on us. But it’s all right anyway, and
no damage done, I reckon.”
Of course every one knew the incident was intended to be one of Nat’s
famous practical jokes, but since the excitement had now died down, and
Mr. Bartlett said nothing to the contrary, Dick concluded to forget it.
“The meeting will again come to order,” he called out, vigorously
rapping the table with the gavel, borrowed from the seniors. “The secretary
will start over again with roll call.”