Economic Unit Concept.
Not what you're looking for?
When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair market value of $100,000.
11. What amount should have been reported for the land on a consolidated balance sheet, assuming the economic unit concept was used?
A) $ 70,000
B) $ 75,000
C) $ 85,000
D) $ 92,500
E) $100,000
12. What amount should have been reported for the land on a consolidated balance sheet, assuming the proportionate consolidation concept was used?
A) $ 70,000
B) $ 75,000
C) $ 85,000
D) $ 92,500
E) $100,000
13. What amount should have been reported for the land on a consolidated balance sheet, assuming the parent company concept was used?
A) $ 70,000
B) $ 75,000
C) $ 85,000
D) $ 92,500
E) $100,000
Purchase this Solution
Solution Summary
The solution looks at economic unit concepts.
Solution Preview
The economic unit concept consolidates assets at fair market value. Thus, answer to 11 is E.
The proportionate ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.