CH 3 BECKER AQUISITION

Question 1

Registration Fees

Answer 1

Reduce APIC on B/S

Question 2

Parent who acquires 100%
1 - Balance Sheet
2 - I/S

Answer 2

BOTH are the same as the parent

Question 3

Parent who does not acquire 100%
1 - Balance Sheet

2 - I/S

Answer 3

= NCI interest 
    FMV of the NCI
    \+ NCI income
    - NCI dividends
   = NCI interest 
     \+ Parent company equity 
= Consolildated Equity 

Always the same as the parent

Question 4

Aquisition Assets and Liabilities are always

Answer 4

FMV

Question 5

Unpatented Technology

In Process R&D if probable future benefit

Answer 5

identifiable intangible assets

Question 6

Acquisition of over 50%
1 - new shares are
2 - sold shares

Answer 6

BOTH revalued to FMV

Question 7

Total Stockholders Equity vesus Common Stock, APIC, Retained Earning

Answer 7

1 - includes NCI

2 - is wiped out and revalued to FMV

Question 8

Intercompany Inv profit Formula

Answer 8

Profit * (EI/BI)

Question 9

Consolidated members stock purchase from a member in the consolidation stock is classified as

Answer 9

Treasury Stock - no G/L

Question 10

Intercompany Bond Transaction

Answer 10

Effect RE by the gain or loss

Question 11

Intercompany Dividends are reported when

Answer 11

they are part of the NCI; otherwise they are eliminated

Question 12

T or F

Combined Statements apply to ONLY Consolidated

Answer 12

False unconsolidated allowed to report combined

Question 13

NCI
Full GW
Partial GW

Answer 13

FULL GW
FMV of ENTIRE subsidiary * NCI %

PARTIAL GW
FMV of SUBS Net identifiable ASSETS * NCI%

Question 14

GOODWILL
FULL
PARTIAL

Answer 14

FULL
FMV of ENTIRE SUB - FMV of subs NA

PARTIAL
Acquisition Costs - FV of subs NA ACQUIRED