Carson Company Purchased 100% of the Outstanding Common Shares of Towson

question 23

Multiple Choice

Carson Company purchased 100% of the outstanding common shares of Towson Company on December 31, 2011 for $170,000. At that date, Towson had $100,000 of outstanding common stock and retained earnings of $30,000. It was agreed that the net assets were fairly valued except that the fair value of the capital assets exceeded their net book value by $20,000 and the carrying value of the inventory exceeded its fair value by $10,000. The capital assets had a remaining useful life of eight years as of the acquisition date and have no salvage value. Inventory turns over four times a year. Both companies pay tax at the rate of 30%. It is now 2014 and Carson has been very pleased with how profitable its investment in Towson has been. On Carson's consolidated financial statements at December 31, 2014, what balance should be reported for goodwill?

• A)$30,000.
• B)$33,000.
• C)$19,000.
• D)$40,000.

Recognize the purpose and components of a mental status exam.

Understand the use, benefits, and limitations of structured interviews in clinical assessments.

Identify the criteria for assessing clinical symptoms.

Understand the factors influencing client prognosis in mental health.

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Definitions:

Casual Sex

Casual Sex refers to sexual activities that occur outside of a traditional romantic relationship without expecting or demanding any commitments to one another.

Permissive Attitudes

A mindset characterized by tolerance or acceptance of behaviors typically considered unconventional or taboo.

Sexual Interest

An individual's preference or inclination towards certain types of sexual activities or attractions.

Fetishism

A type of sexual attraction or obsession towards non-living objects, body parts, or specific situations.