When the asset revaluation account is used to revalue assets prior to admitting a new partner, Asset Revaluation is debited with an upward revaluation of an asset. true or False

Describe the steps to record non monetary asset exchange.

Consolidated Balance Sheet Working Paper, Identifiable Intangibles International Auto (IA) acquires all of the stock of Genuine Parts (GP) and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments. All amounts are in thousands. Cash paid to GP shareholders $10,000 2,400 Cash paid to consultants and lawyers Fair value of new IA stock issued, 1,000 shares, $4 par 72,000 1,800 500 Stock registration fees, paid in cash Fair value of earnings contingency The earnings contingency, if paid, will occur three years subsequent to the acquisition. The balance sheet accounts of GP and IA, just prior to the acquisition, are as follows: International Auto (in thousands) Current assets Fixed assets, net Trademarks Current liabilities Long-term liabilities Common stock, par value Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock Total Book Value Dr (Cr) $60,000 840,000 178,000 (50,000) (700,000)…

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.