Snowflake Corp

question 14

Multiple Choice

Snowflake Corp. Penguin,Inc.acquires 100% of the outstanding shares of Snowflake Corp.for $2,250,000 and accounts for the transaction using the purchase method.Snowflake's balance sheet at the acquisition date is as follows:
Based on the information concerning Snowflake Corp.by what amount would Penguin increase depreciable assets when it consolidates Snowflake on the acquisition date?

• A) $1,775,000
• B) $475,000
• C) $2,250,000
• D) $375,000

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Definitions:

External Cause

Factors outside an individual that can lead to certain outcomes or effects.

Consistent Behavior

A pattern of actions or responses that remains uniform over time in a particular individual or situation.

Attribution

The process of explaining one's own behavior and the behavior of others.

Assigning Causes

The process of attributing reasons or explanations to events, actions, or outcomes, often to understand or predict behavior.