Beesly Co Owned All of the Voting Common Stock of Halpert

question 11

Multiple Choice

Beesly Co. owned all of the voting common stock of Halpert Corp. The corporations' balance sheets dated December 31, 2020, include the following balances for land: -Beesly - $461,000, and -Halpert - $265,000. On the original date of acquisition, the book value of Halpert's land was equal to its fair value. On May 2, 2021, Beesly sold to Halpert a parcel of land with a book value of $75,000. The selling price was $88,000. There were no other transfers, which affected the companies' land accounts during 2020. What is the consolidated balance for land on the 2021 balance sheet?

• A) $713,000.
• B) $726,000.
• C) $739,000.
• D) $801,000.
• E) $814,000.

Understand the definitions and characteristics of nonexperimental and experimental research methods.

Recognize the elements of inferences of cause and effect, including temporal precedence, covariation, and elimination of other causes.

Differentiate between dependent, independent, situational, and confounding variables.

Comprehend the concepts of internal, external, and construct validity in relation to research methodology.

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Definitions:

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).

Publicly Available Information

Information that is not restricted and can be accessed by the general public, often used in the context of financial data and company disclosures.

Abnormal Return

A term used in finance to describe the profits or losses from a security or portfolio that differ significantly from expected or average returns.

Operating Segments

Components of a business that engage in business activities from which they may earn revenues and incur expenses, including results that are reviewed by the company's management.