Wilkins Inc

question 51

Multiple Choice

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins's accounts: Assume that Wilkins paid a total of $500,000 in cash for all of the shares of Granger. In addition, Wilkins paid $42,000 for secretarial and management time allocated to the acquisition transaction. What will be the balance in consolidated goodwill?

• A) $0.
• B) $20,000.
• C) $40,000.
• D) $42,000.
• E) $82,000.

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Definitions:

Regression Coefficients

Numerical values that represent the relationship between the independent variable(s) and the dependent variable in a regression analysis.

Estimated Regression Line

A line that runs through a scatter plot of data points, optimally representing the connection between those points.

y-Intercept

The point where a line crosses the y-axis in a graph, representing the value of the dependent variable when all independent variables are zero.

Slope

In a linear equation, the coefficient that represents the rate of change of the dependent variable with respect to the independent variable.