Which of the following statements in incorrect?   a. Donations of PPE should be recorded at the fair value of the donated asset at the time of donation. b. Property acquired in exchange for shares or other securities in the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident c. When property is acquired in exchange for another asset without commercial substance, no gain nor loss is recognized d. When a group of assets is acquired for a lump sum price, the total cost should be allocated to the individual assets based on their carrying amounts.

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.

(CO 3) Which of the following statements is true concerning an intra-entity transfer of a depreciable asset?  Group of answer choices Net income attributable to the non-controlling interest is never affected by a gain on the transfer. Net income attributable to the non-controlling interest is always affected by a gain on the transfer. Net income attributable to the non-controlling interest is affected by a downstream gain only   Net income attributable to the non-controlling interest is affected only when the transfer is upstream. Net income attributable to the non-controlling interest is increased by an upstream gain in the year of transfer.