Kaye Company Acquired 100% of Fiore Company on January 1 $\begin{array}{l}\text { Retained earnings } &20\\\text { Investment in Fiore }&&20\end{array}$

question 30

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 partial equity method is used. In the years following acquisition, what additional worksheet entry must be made for consolidation purposes that is not required for the equity method?
A. $\begin{array}{l}\text { Retained earnings } &20\\\text { Investment in Fiore }&&20\end{array}$

B. $\begin{array}{l}\text { Investment in Fiore }&20 \\\text { Retained earnings }&&20\end{array}$

C. $\begin{array}{l}\text {Expenses }&20 \\\text { Investment in Fiore }&&20\end{array}$

D. $\begin{array}{ll}\text { Expenses } & 20 \\\quad \text { Retained earnings } &&20\end{array}$

E. $\begin{array}{l}\text { Retained earnings }&20 \\ \text { Additional paid-in capital }&&20\end{array}$

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

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Definitions:

Phenotype

The observable characteristics or traits of an organism as a result of the interaction between its genetic makeup and the environment.

Genotypic Material

The genetic makeup of an organism, composed of DNA, that determines its characteristic features and properties.

Genotype

The genetic makeup of an individual organism, consisting of the alleles inherited from their parents.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.