The cost of debt investments includes each of the following except
a. commissions
b. brokerage fees
c. accrued interest
d. the price paid
The consolidated worksheet shows Excess of cost over Book value of Subsidiary of $210,000. Management of the parent company determines that the market values for subsidiary company plant assets are $90,000 higher than book values. In the consolidated balance sheet, goodwill will be reported at
a. $210,000
b. $120,000
c. $0
d. $90,000
At December 31, 2013, Gammon Inc has these data on its security investments:
Security Cost Fair Value 12/31/13
Trading $140,000 $192,000
Non Trading $137,000 $125,000
If the non trading securities are held as long term investments, which of the following will be recorded to adjust the securities to fair value?
a. Fair value adjustment trading 52,000
Unrealized gain income 52,000
Unrealized gain or loss equity 12,000
Fair value adjustment non trading 12,000
b. Unrealized gain income 52,000
Fair value adjustment trading 52,000
Fair value adjustment non trading 12,000
Unrealized gain or loss equity 12,000
c. Un realized loss income 12,000
Securities 40,000
Unrealized gain income 52,000
d. Securities 40,000
Unrealized gain income 40,000