Flynn Acquires 100 Percent of the Outstanding Voting Shares of Macek

question 34

Multiple Choice

Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2013. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Flynn in stock issuance costs. The book values for both Flynn and Macek as of January 1, 2013 follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands. $\begin{array}{lrrr}&\text { Flynn, Ine. }&\text { Macek Company }\\&&\text { Book Value }&\text { Fair Value }\\\text { Cash } & \$ 900 & \$ 80 & \$ 80 \\\text { Receivables } & 480 & 180 & 160 \\\text { Inventory } & 660 & 260 & 300 \\\text { Land } & 300 & 120 & 130 \\\text { Buildings (net) } & 1,200 & 220 & 280 \\\text { Equipment } & 360 & 100 & 75 \\\text { Accounts payable } & 480 & 60 & 60 \\\text { Long-term liabilities } & 1,140 & 340 & 300\\\text { Common stock } & 1,000 & 80 \\\text { Additional paid-in capital } & 200 & 0 \\\text { Retained earnings } & 1,080 & 480\end{array}$ What amount will be reported for consolidated additional paid-in capital?

• A)$365,000.
• B)$350,000.
• C)$360,000.
• D)$375,000.
• E)$345,000.

Define and distinguish various terms and theories related to power and influence in organizational behavior.

Understand the legal framework and considerations related to negligence claims, including assumption of risk, comparative negligence, and duty of care.

Identify the elements of negligence required to establish a claim in court.

Comprehend the significance of the reasonable person standard in negligence cases.

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Definitions:

Manufacturer Rebate

is a promotion where the manufacturer returns a portion of the purchase price to the customer after the purchase.

Return Policy

A set of rules established by a company outlining how customers can return or exchange unwanted or defective merchandise they've purchased.

Retailer's

Pertaining to businesses that sell goods directly to consumers for personal use, operating from physical or online locations.

Cognitive Dissonance

A psychological phenomenon where an individual experiences distress due to holding conflicting beliefs, attitudes, or values.