Parent Inc Assuming That Parent Inc Acquires 80% of Sub Inc on on July

question 17

Multiple Choice

Parent Inc. and Sub Inc. had the following balance sheets on July 31, 2019: $\begin{array}{|l|r|r|r|}\hline & \text { Parent Inc } & \text { Sub Inc } & \text { Sub Inc } \\\hline & \text { (caryying value) } & \begin{array}{r}\text { (carrying } \\\text { value) }\end{array} & \text { (fair value) } \\\hline \text { Cash } & \$ 180,000 & \$ 36,000 & \$ 36,000 \\\hline \text { Accounts Receivable } & \$ 100,000 & \$ 40,000 & \$ 40,000 \\\hline \text { Inventory } & \$ 60,000 & \$ 24,000 & \$ 27,000 \\\hline \text { Plant and Equipment (net) } & \$ 200,000 & \$ 80,000 & \$ 93,000 \\\hline \text { Goodwill } & \$- & \$ 8,000 & \\\hline \text { Trademark } & \$- & \$ 12,000 & \$ 15,000 \\\hline \text { Total Assets } & \$ \mathbf{5 4 0 , 0 0 0} & \$ 200,000 & \\\hline \text { Current Liabilities } & \$ 80,000 & \$ 50,000 & \$ 50,000 \\\hline \text { Bonds Payable } & \$ 320,000 & \$ 20,000 & \$ 24,000 \\\hline \text { Common Shares } & \$ 90,000 & \$ 80,000 \\\hline \text { Retained Earnings } & \$ 50,000 & \$ 50,000 \\\hline \text { Total Liabilities and Equity } & \$ 540,000 & \$ 200,000 \\\hline\end{array}$ Assuming that Parent Inc acquires 80% of Sub Inc on August 1, 2019 for cash of $180,000, what would be the amount of goodwill appearing on the Consolidated Balance Sheet on the date of acquisition if the fair value enterprise (FVE) method were used?

• A) $72,000
• B) $88,000
• C) $70,400
• D) Nil

Analyze the outcomes of various mentoring strategies on career success.

Identify the psychosocial and career functions of mentoring within organizations.

Recognize the benefits and drawbacks of formal and informal mentoring programs.

Explain the concept of collective vs. individual socialization and its relevance to organizational culture and behavior.

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Definitions:

Crisis

A time of intense difficulty, trouble, or danger, often requiring immediate action or decision-making.

Contact Information

Details provided to facilitate communication, such as phone numbers, email addresses, and physical addresses.

Termination Messages

Communications designed to inform an employee that their employment is being ended, typically including details on the reasons and any next steps.

Personal Allegations

Claims or accusations made by an individual, often without formal evidence, regarding another's behavior or actions.