Popper Co Acquired 80% of the Common Stock of Cocker Co

question 46

Multiple Choice

Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2019, when Cocker had the following stockholders' equity accounts. To acquire this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been measured for impairment annually and has not been determined to be impaired as of January 1, 2022.Popper did not pay any premium when it acquired its original interest in Cocker. On January 1, 2022, Cocker reported a net book value of $1,113,000 before the following transactions were conducted. Popper uses the equity method to account for its investment in Cocker, thereby reflecting the change in book value of Cocker.On January 1, 2022, Cocker issued 10,000 additional shares of common stock for $21 per share. Popper did not acquire any of this newly issued stock. How would this transaction affect the additional paid-in capital of the parent company?

• A)$0.
• B)Decrease it by $23,240.
• C)Decrease it by $68,250.
• D)Decrease it by $45,060.
• E)Decrease it by $64,720.

Understand the concept of repudiation and its forms (express and implied) in contract agreements.

Comprehend the duty to mitigate damages in contract law and its effect on the compensation awarded.

Distinguish between liquidated damages and penalty clauses and their enforceability.

Grasp the principles surrounding the doctrine of quantum meruit and its application in contract law.

---

Definitions:

Tree Diagram

A geometric representation of the structure of a sentence. Its nodes are labeled with phrase- (e.g., noun phrase) and word-class (e.g., adjective) category names, and the descending branches indicate relationships among these categories.

Phrase Structure Description

A tree diagram or labeled bracketing that shows the hierarchical structure of a sentence.

Branching Tree Structure

A hierarchical data structure in which each node has zero or more children nodes, resembling the branches of a tree.

Comprehension of Propositions

The process of understanding the meaning and relationships between ideas or statements within a given text or conversation.