On January 1, 2013, the Moody Company Entered into a Transaction

question 103

Multiple Choice

On January 1, 2013, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: $\begin{array}{lrr}&\text { Moody }& \text { Osorio }\\\text { Cash } & \$ 180 & \$ 40 \\\text { Receivables } & 810 & 180 \\\text { Inventories } & 1,080 & 280 \\\text { Land } & 600 & 360 \\\text { Buildings (net) } & 1,260 & 440 \\\text { Equipment (net) } & 480 & 100\\\text { Accounts payable } & (450) \\\text { Long-term liabilities } & (1,290) \\\text { Common stock }(\$ 1 \text { par }) &(330) \\\text { Common stock }(\$ 20 \text { par }) &&(240) \\\text { Additional paid-in capital } & (1,080) &(340) \\\text { Retained earnings } & (1,260) &(340) \end{array}$ Note: Parentheses indicate a credit balance. In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60.
Compute the amount of consolidated buildings (net) at date of acquisition.

• A)$1,700.
• B)$1,760.
• C)$1,640.
• D)$1,320.
• E)$500.

Understand the legislative barriers to the abolitionist movement, including the gag rule.

Explain how abolitionists utilized the American Revolutionary heritage and the Constitution in their arguments.

Understand the critique and celebration of national holidays and documents within the context of the abolitionist movement.

Discuss the strategies and arguments used by abolitionists to counter racism and promote the idea of universal freedom.

---

Definitions:

Accounts Payable Turnover

A financial metric that measures how fast a business pays its suppliers, calculated by dividing the total purchases by the average accounts payable during a period.

Cash Cycle

It refers to the time period between the disbursement of cash and the collection of receivables in a company's operational cycle.

Credit Sales

Sales made by a business where payment is delayed, often part of a strategy to increase sales by offering customers flexibility.

COGS

The cost of goods sold; it represents the direct costs attributable to the production of goods sold in a company.