Goehler, Inc

question 99

Multiple Choice

Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2012, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life) . Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life) . On December 31, 2013, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.
If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2013?

• A) $1,080,000.
• B) $1,104,000.
• C) $1,100,000.
• D) $1,468,000.
• E) $1,475,000.

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Definitions:

SIHRM

Strategic International Human Resource Management focuses on human resource practices that support international operations and cultural diversity.

Approaches

Different methods or strategies employed to tackle problems, accomplish tasks, or achieve goals.

International Context

Refers to the circumstances or environments that transcend national borders and involve multiple countries or cultures.

Strategic International HRM

The comprehensive approach to human resource management that aligns HR practices with the strategic objectives of an organization on a global scale.