会计英语选择题.docVIP

1．A company acquired 30% of B Company’s voting stock for $200 000 on January 2,2004. A’s 30% interest in B gave A the ability to exercise significant influence over B’s operating and financial policies. During 2004, B earned $ 70 000 and paid dividends of $50 000. B reported earnings of $150 000 for the six months ending June 30, 2005, and $200 000 for the year ending December 31, 2005.on July 1, 2005, A sold half of its stock in B for $140 000 cash. B paid dividends of $60 000 on October 1, 2005. Use the above information to answer the following three questions: Before income taxes , what amount should A include in its 2004 income statement as a result of the investment ? A. $15 000 B. $21 000 C. $36 000 D. $80 000 In A’s December 31, 2004 Balance Sheet, what should be the carrying amount of this investment? A. $200 000 B. $206 000 C. $221 000 D. $236 000 On its 2005 income statement ,what amount should A report as a gain or loss from the sale of half of its investment? A. $22 000 gain B. $23 500 gain C. $500 loss D. $14 500 gain 2. On May 1, 2005, ABC purchased 30% of the stock of D Corporation for $600 000. During 2005, D had net income of $100 000. On February 1 and on August 1, D paid $30 000 in dividends. On December 31,2005, the market price of the stock is $630 000. what amount should be shown in the Investment in D Corporation account on ABC’s Balance Sheet dated December 31, 2005? A. $621 000 B. $611 000 C. $629 000 D. $630 000 3.When the fair value of investments in debt securities exceeds their carrying amounts, held-to-Maturity securities and available-for-sale securities should be reported at the end of the year at _____ Held-to-maturity securities available-for-sale securities A. Fair value Amortized Cost B. Amortized cost Fair value C. Amortized cost Amortized cost D.