Songbird Corporation's Trial Balance Included the Following Account Balances at December

question 16

Multiple Choice

Songbird Corporation's trial balance included the following account balances at December 31,2014:

What amount should be included in the current liability section of Songbird's December 31,2014,balance sheet?

• A)$135,000
• B)$153,000
• C)$195,000
• D)$234,000

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Definitions:

Equity Method

This involves documenting investments when the investor holds substantial influence over the entity being invested in, without having total control.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the net identifiable assets.

Retrospectively Apply

The action of applying a new accounting policy to transactions, other events, and conditions as if that policy had always been applied.