On January 1, 2012, Cale Corp Kaltop Earned Net Income for 2012 of $126,000 and Paid

question 31

Multiple Choice

On January 1, 2012, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2012: $\begin{array}{lrr}&\text { Book } & \text { Fair } \\&\text { Value } & \text { Value }\\\text { Current assets } & \$ 120,000 & \$ 120,000 \\\text { Land } & 72,000 & 192,000 \\\text { Building (twenty year life) } & 240,000 & 268,000 \\\text { Equipment (ten year life) } & 540,000 & 516,000 \\\text { Current liabilities } & 24,000 & 24,000 \\\text { Long -term liabilities } & 120,000 & 120,000 \\\text { Common stock } & 228,000 & \\\text { Additional paid -in capital } & 384,000 & \\\text { Retained earnings } & 216,000 &\end{array}$ Kaltop earned net income for 2012 of $126,000 and paid dividends of $48,000 during the year. At the end of 2012, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for

• A)$124,400.
• B)$126,000.
• C)$127,000.
• D)$76,400.
• E)$0.

Understand the benefits and principles of VFD (Variable Frequency Drive) technology and its impact on motor operation.

Identify the types of motors that are compatible with VFDs and their characteristics.

Describe the significance of the affinity laws in relation to pump and fan operation.

Explain the purpose and function of PWM (Pulse Width Modulation) in VFDs.