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1) Morin Co. acquired all the shares of Lightfoot Ltd. Lightfoot has a number of amortizable capital assets and has properly recorded the related deferred income taxes on its books. What deferred income tax adjustment must Morin make for its consolidated financial statements? A) Adjustment for any changes in temporary differences.
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21) With respect to interim financial statements, which of the following is not dictated by IFRS? A) Content B) Identification of recognition principles C) Identification of measurement principles D) Frequency of preparation 22) Which of the following is not included among requirements for interim financial reports for public companies? A) Statement of comprehensive income B) Statement of.
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21) What does "one-line consolidation" refer to? A) Cost method B) Equity method C) Direct method of consolidation D) Worksheet method of consolidation 22) DIY Ltd. owns 20 subsidiary companies. Most of the subsidiaries are hardware stores operating in rural areas. One of the subsidiaries has been having financial difficulties and has finally decided to.
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11) Goodwill impairment testing can involve comparing the recoverable amount of a cash-generating unit to its ________. A) carrying value, excluding goodwill B) carrying value, including goodwill C) carrying value of tangible assets and the fair value of its intangible assets D) fair value of tangible assets and the carrying value of its intangible.
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1) Proudfoot Ltd. acquired all the shares of Jacob Ltd. several years ago. In conducting its goodwill impairment test for the current year, Proudfoot has determined that there has been an impairment related to revalued assets. On Proudfoot's consolidated financial statements, where should this impairment be reported? A) As part of.
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38) Sugar Corp and Syrup Limited have reached an agreement in principle to combine their operations as of October 1, 20X9. However, the board of directors cannot decide on the best way to accomplish the combination. Below are the alternatives being considered. 1.Sugar acquires the net assets of Syrup for $1,700,000.
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11) The following information on sales is available for the company's three operating segments: SegmentInternational SalesExternal SalesTotal Sales A$60,000$300,000$360,000 B200,00010,000210,000 C 1,500,000 1,500,000 $260,000$1,810,000$2,070,000 Which of the operating segments must be reported separately? A) Only Segment C B) Only Segments B and C C) Only Segments A and C D) Segments A, B, and C 12) The following information on sales.
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1) Which of the following organizations does IFRS 8 not apply to? A) Banks B) Mutual life insurance companies C) Private companies D) Cooperative business enterprises 2) Which of the following is not a requirement in defining an operating segment? A) The particular component must be generating revenue. B) The particular component's operating results must be reviewed.
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33) Prawn Corporation owns 80% of the outstanding voting shares of Shrimp Corporation, having acquired its interest January 1, 20X3, for $100,000. At the time of the acquisition, Shrimp Corporation had a shareholders' equity totalling $50,000, made up of retained earnings of $30,000 and common shares of $20,000. The following.
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11) Amber Ltd. purchased 80% of Patel Ltd. for $1,000,000. At the time of acquisition, the carrying value of Patel's net identifiable assets was $1,000,000 and the fair value was $1,350,000. What is the amount of the goodwill under the entity method? A) $(100,000) B) $100,000 C) $280,000 D) $350,000 12) Lopez Ltd. purchases 65%.
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1) Under IFRS, which of the following statements is true? A) Preferred shares must be classified as debt. B) Preferred shares must be classified as equity. C) Preferred shares can be classified as debt or equity depending on the rights attached to them. D) Preferred shares can be classified as debt or equity at.
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39) Slade Co. has 1,000,000 shares outstanding and is traded on the TSX. On October 1, 20X6, Slade purchased all of the outstanding shares of Print Co. (a private company) by issuing 1,200,000 shares at $50 per share. Required: Explain the legal form of this transaction. What is the transaction in substance?.
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34) Prawn Corporation owns 80% of the outstanding voting shares of Shrimp Corporation, having acquired its interest January 1, 20X3, for $100,000. At the time of the acquisition, Shrimp Corporation had a shareholders' equity totalling $50,000, made up for retained earnings of $30,000 and common shares of $20,000. The following.
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37) Bowen Limited purchased 60% of Sloch Co. when Sloch's reported retained earnings were $330,000 and its share capital was $200,000. Bowen also owns 80% in Zeek Limited, which was purchased when Zeek reported retained earnings of $575,000 and had share capital of $270,000. For each acquisition, the purchase price.
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Beechy, Trivedi, MacAulay  Advanced Financial Accounting, Seventh EditionOnline Appendix 5B  Decreases in Ownership Interest 1) When a subsidiary issues shares, ________. A) no gain or loss is recognized B) a gain or loss is always recognized C) this reduces the NCI D) this may increase the NCI 2) Gumble Ltd. has owned 65% of the common.
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1) For gains on intercompany bond holdings, which method of allocating the gain emphasizes substance over form? A) Allocating the gain to the parent company as the parent company has ultimate control B) Allocating the gain to the bond purchasing company as the bonds will be retired under consolidation C) Allocating the gain.
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34) On December 31, 20X5, Paper Co. purchased 60% of the outstanding common shares of Book Ltd. for $760,000 in shares and $200,000 in cash. The statements of financial position of Paper and Book immediately before the acquisition were as follows (in 000s):           Paper                Book        BookFairBookFair ValueValueValueValue Cash$360$360$200$200 Accounts receivable520500380380 Inventory800880400360 Property, plant,.
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37) On December 31, 20X6, the statements of financial position of Power Company and Pro Company are as follows (amounts in thousands): PowerProPro (FV) Cash$   500$   800 Accounts receivable1,5001,700 Inventories2,0001,500 Plant and equipment (net)2,5004,000$4,300 Total Assets$6,500$8,000 Current liabilities$   700$   400 Long-term liabilities800500$   400 Common shares2,5001,000 Contributed surplus8001,500 Retained earnings1,7004,600 Total Equities$6,500$8,000 Power Company has 100,000 shares of common stock outstanding. Pro Company has.
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