In an asset deal, the transaction will normally generate followed taxes.资产交易通常会产生以下哪些税？（)

A.Thecorporateseller公司卖家

B.Thebuyer买家

C.Neither都不是

D.Both都是

urchase.在法定合并，资产交易或股票购买之后，买方使用购买会计。()

此题为判断题(对，错)。

Which of the following is the reason why we should learn a second language？

A.Because most countries today, because of increasing urbanization, international commerce, tourism, business travel, and modern technology have begun to embrace the concept of a society that is multicultural. And evidently, a globalized multicultural society would naturally be multilingual.

B.Because learning a second language not only challenges your mind, but also enriches your soul, so to speak.

C.Because by learning a second language, and perhaps even more, we can understand each other better and deal with each other with more empathy and consideration.

D.Because when people learn a second language, they become a valuable asset to the community.

Rocky Mountain Air Cargo is a privately held commercial aviation company serving the western United States. It publishes financial statements in accordance with U.S. GAAP and uses a fiscal year that matches the calendar year.

Rocky Mountain was in good financial shape heading into 2003, with assets of $50 million at the beginning of the fiscal year. That year, it earned $3 million in net income and was easily able to maintain its traditional 50 percent dividend payout ratio. However, Rocky Mountain had a very difficult year in 2004, reporting a loss of $800,000. It managed to pay $1 million in dividends, but the decision to pay dividends in such a weak financial year further undermined the company’s fiscal stability.

Flitenight Air Lines, a publicly-traded aviation firm serving the central and Midwestern United States, wanted to expand its range of service by coordinating its flight schedule with airlines serving different geographic regions ofNorth America. One of these airlines was Rocky Mountain Air Cargo.

To cement the relationship, Flitenight’s CEO, John “Bulldog” Basten, decided to make a significant investment in Rocky Mountain Air Cargo. He was easily able to convince both boards of the wisdom of the deal, and, in his usual brash style, personally negotiated the terms with his counterpart at Rocky Mountain, Buck Matthews. Flitenight Air Lines acquired a 20 percent stake in Rocky Mountain Air Cargo (with an option to purchase 40 percent more) for $10 million cash. The deal closed on January 1, 2003 and Flitenight accounted for the investment using the equity method.

Basten was not happy to find that he had invested right at the peak of Rocky Mountain’s profitability and wound up with a money-losing airline. He had a difficult conversation with Matthews in early 2005, complaining about the impact of the Rocky Mountain investment on Flitenight’s financials. Basten pointed out that he had a loss on his books: the original $10 million investment in Rocky Mountain was carried at only $9,940,000 on Flitenight’s December 31, 2004 balance sheet. Matthews countered that this was just an accounting entry: on a cash basis, Flitenight had a gain of 5 percent on its investment over the two years.

Matthews’ insistence that the investment had earned money for Flitenight did not sit well with Basten. Basten decided that Rocky Mountain was clearly being mismanaged and concluded it was time to gain control of the company.

Basten assured Neil Glenn, the Chairman of Flitenight’s board, that he could turn Rocky Mountain around. He promised Glenn that, in 2005, Rocky Mountain would once again achieve $3 million in earnings and a 50 percent payout ratio. “With those results,” Basten promised Glenn, “our asset accounts will value the Rocky Mountaininvestment at $10,240,000 on our December 31, 2005 balance sheet – so we’ll show a gain on our original investment.” Glenn was skeptical of anyone’s ability to turn the airline around so quickly. Even so, Glenn assured Basten, “If it takes you longer to turn it around, at least we’ll have the dividend income on our 2005 cash flow statements.”

Basten notified Matthews and Rocky Mountain’s board that Flitenight intended to exercise its option. At the direction of Basten and Glenn, Flitenight purchased the additional shares for cash and gained control of RockyMountain on December 31, 2004.

Part 3)

If Flitenight were to account for its Rocky Mountain investment using the cost method instead of the equity method, Flitenight’s 2004 income statement would reflect its investment in Rocky Mountain by including which of the following？

A)Only a loss of $160,000.

B)Only income of $200,000.

C)Both dividends received by Flitenight from RockyMountain and Flitenight’s share of Rocky Mountain’s earnings.

D)Nothing, since the cost of the acquisition is not adjusted until the asset is sold.

.

A.Dr： disposal of fixed asset 30 000 Depreciation 10 000 Cr： fixed asset 40 000###SXB###B.Dr. disposal of asset 30 000 Depreciation 10 000 Cr. fixed asset 40 000###SXB###C.Dr. disposal of asset 30 000 Depreciation 10 000 Cr. asset 40 000###SXB###D.None of the above.

A.investors will hold varying amounts of the risky asset in their portfolios.

B.all investors will have the same portfolio asset allocations.

C.investors will hold varying amounts of the risk-free asset in their portfolios.

D.A and C.

E.none of the above.