REFERENCE: Ref.03_06 Kaye Company Acquired 100% of Fiore Company on January 1,2009.Kaye

question 64

Multiple Choice

REFERENCE: Ref.03_06
Kaye Company acquired 100% of Fiore Company on January 1,2009.Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year.Fiore reported net income of $400 in 2009 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?
I am not able to accept changes below.The balloons won't go away!

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

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Definitions:

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

GNP

GNP, or Gross National Product, represents the total dollar value of all goods and services produced over a specific time period by a nation's residents, regardless of the production location.

Population

The total number of people inhabiting a particular area, region, or country.

Output Per Capita

The measure of a total output of a country divided by the number of people in the population, indicating average productivity.