20231120

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School
Nipissing University **We aren't endorsed by this school
Course
ACCT 4866
Subject
Accounting
Date
Nov 14, 2023
Pages
1
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1. Dividend income and equity method income from a subsidiary are ____ usually not ____ taxable on a corporate income tax return.. 2. is the higher of fair value less costs of disposal and value in use. 3. Recoverable amount is the higher of fair value less costs of disposal and value in use. 4. Intangible assets with indefinite useful lives should be tested for impairment annually or more frequently if events or changes in circumstances indicate possible impairment. 5. A holding company purchases 25% of the common shares of a subsidiary company for $300,000 on January 1, 20X1. Assuming the subsidiary company pays cash dividends of $40,000 in 20X1, which of the following is the journal entry to record the Wilson's share of the dividends in its books under the equity method? Debit Cash for $10,000; Credit Investment in Subsidiary for $10,000 6. The consolidated financial statements _____ are not ___ affected by the method used by the parent to account for its investment in the subsidiary. 7. Which of the following events would require the investigation of a possible impairment? Loss of a patent infringement lawsuit that affects overall operations. A significant adverse change in the business environment. 8. The higher of fair value less costs of disposal and value in use is referred to as recoverable amount 9. Intangible assets with indefinite useful lives should be tested for impairment annually.
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