Use the Following Information for Questions

question 33

Multiple Choice

Use the following information for questions
On January 1, 2011, Global Inc.acquired 100% of National Co.'s voting shares for $900,000.The fair market value of National's net assets was $825,000 which equaled their book value.During 2011, National earned $275,000 and paid out cash dividends of $125,000.Goodwill resulting from the acquisition was reviewed by management who determined that no impairment in value had occurred.Global earned net income, excluding National, of $1,200,000 and paid dividends of $200,000.
-The consolidated goodwill reflected on the balance sheet at December 31, 2011 was:

• A)$0
• B)$67,500
• C)$75,000
• D)$150,000

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Definitions:

Characteristic Adaptation

Patterns of behavior that are developed in response to the environment and are consistent over time and situations.

Basic Tendency

An underlying characteristic or predisposition to respond to the environment in a certain way, often considered stable over time.

Reticular Activating System

A network of nerves in the brainstem that plays a key role in regulating wakefulness, attention, and sleep-wake transitions.

Temperament

A person's or animal's nature, especially as it permanently affects their behavior.