18. On January 1, 2023, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $810,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $800,000 and Retained Earnings of $40,000. The acquisition- date fair value of the 10 percent noncontrolling interest was $90,000. QuickPort attributed the $60,000 excess of NetSpeed's fair value over book value to a database with a 5-year remaining life. During the next two years, NetSpeed reported the following: On July 1, 2023, QuickPort sold communication equipment to NetSpeed for $42,000. The equipment originally cost $48,000 and had accumulated depreciation of $9,000 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2024. b. Prepare the worksheet adjustments for the December 31, 2024, consolidation of QuickPort and NetSpeed..

1. 18. Upon committing fraud, what do most fraudsters do with their stolen funds? A. Put them in
savings B. Spend them on extravagant items C. Donate them to charities D. Slowly give them
back to the company 19. Which of the following is a problem resulting from inadequate
segregation of duties? A. Julie both writes expense cheques and takes in customers' cash B.
Mpumi both orders office supplies and orders company cheques C. Steve both records
receivables and can write off bad accounts D. Rebecca both types memos and orders lunch 20. In
relation to fraud, mandating employee vacations of 2 weeks or longer annually is effective
because: A. Employees who work too hard usually burn out and fraud is committed when people
are tired and not thinking clearly B. If people don't take vacations they will feel under-
appreciated and think the company "owes them" c. When fraudulent employees take a leave,
their work usually must be performed by others and the fraud is more easily deterted D. None of
the above 21. Edward, Gross and other criminologists have said that all organisations are
inherently: A. Criminal B. Exploitative C. Criminogenic D. None of the above 22. Who has the
primary responsibility for establishing and maintaining controls? A. Primary responsibility for
controls belongs to internal auditors. They are the ones who create the controls and investigate
potential violations of the controls. B. Primary responsibility rests with management.
Management both conveys acceptable culture and has the final say in how fraud cases are
treated. C. Primary responsibility lies with employees. They are the ones most likely to witness
violations and are responsible to watch for those violations. D. Primary responsibility is not
attributable to one person or group - all staff members must consider themselves responsible for
the control environment. 23. is the crediting of one account through the abstraction of money
from another account. A. Lapping B. Skimming C. Padding D. Rigging