Chapter 1 Accounting for Intercorporate Investments Learning Objectives ñ Coverage by question Multiple Choice Exercises Problems LO1 ñ Identify the types of business combinations and the accounting for each. 2, 9 5 LO2 ñ Explain the mechanics of the accounting for investments using the equity method of accounting. 2, 4, 12 LO3 ñ Explain when the equity method should be used. 3, 7, 8, 18 LO4 ñ Explain the amortization of excess assets, and the deferral of unrealized income. 5, 11, 19-21, 25-28, 40 2, 3 1 LO5 ñ Explain the process for deferral of unrealized income. 13, 29-32, 39 4 3 LO6 ñ Explain the equity method of accounting for less than 100% ownership. 1, 8, 10, 11, 16-20, 24-26, 29-40 1-4, 6 1, 3, 4 LO7 ñ Explain when the equity method should be discontinued. 14 1 LO8 ñ Explain the accounting for changes to and from the equity method. 6, 15, 22, 23 2