Question 2. Which of the following are the conditions that must be met for something to be an asset e for inclusion on an entity's balance sheet? (A) The asset must be a tangible good (B) The entity controls the asset (C) The entity can measure the asset's value and believes the asset will provide futur economic value (D) Only answer choices (B) and (C) must be met (E) All of the above Question 3. Which of the following financial statements are required to be prepared by a privately he corporation? (A) Balance Sheet and Income Statemont

25.   A parent company’s investment account would include an element which is representative of :   Multiple Choice   the unrecorded difference between fair value and book value of the investee’s assets.   the unrecorded book value of the investor’s assets.   the goodwill accrued since the purchase of the investee.   the recorded current value of the investee’s assets.

One of the three conditions for an asset is that the business __________ the asset.

shares on January 1. Promise paid $300,000 and issued $200,000 in long-term liabilities and paid Promise also agreed to pay $80,000 to the former owners of SaidSo contingent on meeting certain revenue goals during the following year. Promise estimated the present value of its probability adjusted expected payment for the contingency or contingent obligation at $30,000 in legal fees. $23,000 Precombination book values for SaidSo, Inc. are as follows: 80,000 90,000 175,000 Current assets 24 Equipment Buildings Goodwill 33,000 $378,000 Total $ (45,000) (180,000) (115,000) (138,000) 100,000 $(378,000) Current liabilities 2$ Common stock Retained earnings Revenues Expenses Total Promise's appraisal of SaidSo found two balance sheet accounts that differed from fair value. Equipment was undervalued by $15,000 and Buildings by $5,000. Promise noted that SaidSo has unrecorded client contracts worth $60,000 and résearch and development activity in process with an appraised fair value of $90,000