DC Company Purchased 100% of the Outstanding Common Shares of FA

question 23

Multiple Choice

DC Company purchased 100% of the outstanding common shares of FA Company on December 31,20X3 for $170,000.At that date,FA 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.What adjustment should be made to the consolidated financial statements for the year ended December 31,20X6 for the fair value increment related to the capital assets?

• A)The retained earnings at January 1,20X6 will be increased by $20,000.
• B)Amortization expense on the capital assets for 20X6 will be increased by $2,500.
• C)Amortization expense on the capital assets for 20X6 will be increased by $7,500.
• D)Retained earnings at the end of 20X6 will be increased by $12,500.

Comprehend the colonial reactions to the English Civil Wars and its implications for colonial society.

Evaluate the effect of the English Civil Wars on colonial development and economic practices.

Examine the evolving trade relationships between New England, the Caribbean, and other colonies.

Understand the role of New France and the French relationship with indigenous peoples in North America.

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Definitions:

Orgasmic Platform

A portion of the vagina that undergoes vasocongestion during sexual arousal.

Masters and Johnson's Model

A sexual response cycle model developed by William Masters and Virginia Johnson, outlining the stages of sexual arousal.

Sexual Response

The physiological and emotional reactions of an individual to sexual stimulation.

Limbic System

A group of structures in the brain associated with emotions and feelings; involved with producing sexual arousal.