Kaye Company Acquired 100% of Fiore Company on January 1

question 81

Multiple Choice

Kaye Company acquired 100% of Fiore Company on January 1, 2013. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2013 and paid dividends of $100. Assume the initial value method is used. In the year subsequent to acquisition, what additional worksheet entry must be made for consolidation purposes that is not required for the equity method?

• A) Entry A.
• B) Entry B.
• C) Entry C.
• D) Entry D.
• E) Entry E.

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Definitions:

Violent Crime

Acts that involve force or threat of force, including murder, rape, robbery, and aggravated assault.

External Social Control

Regulates people by imposing punishments and offering rewards.

Feelings of Guilt

Feelings of guilt involve emotional distress and remorse experienced when one believes they have done something wrong or failed to live up to personal or societal standards.

Community Service

Volunteer activities aimed at improving conditions or providing assistance in a local community.