6. On April 1, X3, Yongquan Company acquired all the net assets of Qingquan Company by way of absorption and merger; Purchaser and recognized goodwill of $180,000 in the acquisition entry. Among the net assets of Qingquan Company on April 1, X3, there was an account of equipment The face value and tentative fair value are $200,000 and $240,000 respectively, with an estimated useful life of eight years, no residual value, straight-line method Set aside depreciation. On January 1, X4, Yongquan Company adjusted the provisional fair value of the acquisition date of the equipment to 2 $320,000. Which of the following statements is incorrect? (A) The amount of equipment that should be recognized on Yongquan's accounts on April 1, X3 is $240,000. (B) The disposal equipment benefit of $80,000 should be recognized on Yongquan's accounts on January 1, X4. (C) On January 1, X4, Yongquan's accounts should be adjusted to reduce retained earnings by $7,500. (D) On December 31, X3, the depreciation expense of $22,500 of the equipment should be recognized in Yongquan Company's accounts.

6. On April 1, X3, Yongquan Company acquired all the net assets of Qingquan Company by way of absorption and merger; Purchaser and recognized goodwill of $180,000 in the acquisition entry. Among the net assets of Qingquan Company on April 1, X3, there was an account of equipment The face value and tentative fair value are $200,000 and $240,000 respectively, with an estimated useful life of eight years, no residual value, straight-line method Set aside depreciation. On January 1, X4, Yongquan Company adjusted the provisional fair value of the acquisition date of the equipment to 2 $320,000. Which of the following statements is incorrect? (A) The amount of equipment that should be recognized on Yongquan's accounts on April 1, X3 is $240,000. (B) The disposal equipment benefit of $80,000 should be recognized on Yongquan's accounts on January 1, X4. (C) On January 1, X4, Yongquan's accounts should be adjusted to reduce retained earnings by $7,500. (D) On December 31, X3, the depreciation expense of $22,500 of the equipment should be recognized in Yongquan Company's accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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