Q24. If Prudhomme Inc. follows Sanscartier’s recommendation and classifies its shares of Quality as be trading securities, what would be the effect of its ownership of Quality on Prudhomme’s income statement for fiscal year 2004? A) +$30,000. B) −$70,000. C) −$100,000.
Q25. If Prudhomme Inc. acts on Xavier Prudhomme’s recommended investment and accounts for this investment using the equity method, what is the value of Quality on the balance sheet of Prudhomme as of December 31, 2004? A) $1,500,000. B) $1,425,000. C) $1,250,000. Correct answer is
B)
Q26. If Prudhomme Inc. acts on Xavier Prudhomme’s recommended investment and considers its shares of Quality to be trading securities, what is the effect of its ownership of Quality on Prudhomme’s income statement for FY2004? A) +$150,000. B) −$175,000. C) −$100,000.
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发表于 2009-1-7 15:44
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