Vaughn Inc

question 44

Multiple Choice

Vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the initial value method has been applied?

• A) $276,000.
• B) $317,000.
• C) $359,000.
• D) $368,000.
• E) $383,000.

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Definitions:

Cortical Surface Area

The measure of the outer layer of the brain's cerebrum, indicative of brain size and function, often studied in neuroscience.

Frontal Cortex

The part of the brain located at the front of each cerebral hemisphere, responsible for executive functions such as decision making, problem solving, and controlling behavior.

Sensory Functions

The abilities related to receiving and processing sensory information, such as sight, hearing, touch, taste, and smell.

Motor Functions

Physical activities and movements controlled by the brain and nervous system, such as walking, grasping, and swallowing.