How about these seven questions over the next 30 minutes? I’m


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How about these seven questions over the next 30 minutes? I’m sorry for the tight crunch time. test bfinal.docx Question 271 pts Dunbrook Travel, Inc. acquired an 80% interest in Ocean Cruises on December 31 for $970,000. Dunbrook has the ability to exercise significant influence on management decisions. The Ocean Cruises stock is publically traded. During the year, Ocean Cruises reported net income of $160,000 and paid cash dividends of $40,000. How should Dunbrook Travel account for its investment in Ocean Cruises? Account for the investment as a special purpose entity. Apply the equity method and report the investment at market value at year end. Apply the equity method and perform a full consolidation. Apply mark-to-market accounting and consolidate the statements at year end. Flag this Question Question 282 pts The Evanston Company acquired a 25% interest in Straw Enterprises for $8,000,000 and appropriately applied the equity method. During the first year, Straw reported net income of $1,060,000 and paid cash dividends totaling $100,000. What amount will The Evanston Company report regarding its Straw investment at the end of the first year on its Income Statement? Dividend income totaling $25,000 Net investment earnings totaling $225,000 Investment earnings totaling $250,000 Investment earnings totaling $265,000 Flag this Question Question 292 pts On January 1, Evanston Corporation purchased 40% of the outstanding common stock of the Straw Corporation for $275,000. During the year, Straw Corporation reported net income of $100,000 and paid cash dividends of $50,000. The balance of the Investment in the Straw Corporation account on the books of Evanston Corporation at year­end is: $270,000 $295,000 $220,000 $200,000 Flag this Question Question 304 pts Software, Inc. maintained a large investment in marketable securities valued at approximately $42 billion as of the beginning of the year. During the year, the securities produced investment income (dividends and interest income) totaling $2.5 billion. At year­end, the portfolio of marketable securities had appreciated to $45.5 billion. Calculate the pre­tax income statement effect of the marketable securities if 1. The entire portfolio is classified as trading securities: $ billion 2. The entire portfolio is classified as available­for­sale securities: $ billion 3. Question 352 pts 4. WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows: 5. Year 1 Year 2 Year 3 Percentage of work completed 25% 35% 40% Costs incurred during the year $86,000 $124,000 $ 90,000 Progress billings during the year 80,000 180,000 190,000 Cash collected during the year 65,000 170,000 220,000 6. 7. At the end of Year 1, how much is the balance of the assets account Production­in­ Progress if WW Guy uses the percentage of completion method? $11,000 $113,750 $75,000 $86,000 9. 10. 11. 12. Flag this Question Question 362 pts 13. WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows: 14. Year 1 Year 2 Year 3 Percentage of work completed 25% 35% 40% Costs incurred during the year $86,000 $124,000 $ 90,000 Progress billings during the year 80,000 180,000 190,000 Cash collected during the year 65,000 170,000 220,000 15. 16. How much revenue should WW Guy recognize during Year 1 if WW Guy uses the percentage of completion method? $113,750 $80,000 $38,750 $450,000 18. 19. Flag this Question 20. Question 372 pts 21. WW Guy Contractors began a contract to build a new student union on the UNF campus during Year 1 for $455,000. Information concerning the project follows: 22. Year 1 Year 2 Year 3 Percentage of work completed 25% 35% 40% Costs incurred during the year $86,000 $124,000 $ 90,000 Progress billings during the year 80,000 180,000 190,000 Cash collected during the yea

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