Chapter 1 Accounting for Intercorporate Investments Learning Objectives – Coverage by question Multiple Choice Exercises Problems LO1 – Identify the types of business combinations and the accounting for each. 2, 9 5 LO2 – Explain the mechanics of the accounting for investments using the equity method of accounting. 2, 4, 12 LO3 – Explain when the equity method should be used. 3, 7, 8, 18 LO4 – Explain the amortization of excess assets, and the deferral of unrealized income. 5, 11, 19, 20, 21, 25, 26, 27, 28, 40 2 1 LO5 – Explain the process for deferral of unrealized income. 13, 29, 30, 31, 32, 39 4 3 LO6 – Explain the equity method of accounting for less than 100% ownership. 1, 10, 11, 16, 17, 18, 24, 33, 34, 35, 36, 37, 38 1, 3, 6 4 LO7 – Explain when the equity method should be discontinued. 14