Use the Following Information to Answer the Question(s) Below

question 50

Multiple Choice

Use the following information to answer the question(s) below.

On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:

$\begin{array}{lll}&\text {Book Value}&\text {Fair Value}\\\text { Cash } & \$ 10,000 & \$ 10,000 \\\text { Accounts Receivable } & 30,000 & 35,000 \\\text { Inventory } & 40,000 & 50,000 \\\text { Plant Assets } & \underline{60,000} & \underline{80,000} \\\text { Total Assets } & \underline{ \$ 140,000 }& \underline{\$ 175,000}\end{array}$
$$\begin{array} { l l } \text { Liabilities } & \$ 25,000 &\$25,000\\\text { Capital Stock } & 100,000 \\\text { Retained Earnings } & 15,000\end{array}$$ Push-down accounting is used for the acquisition.
-Assume the entity theory is used.On January 2,2014,Leah Company will report Goodwill of ________ and Accounts Receivable of ________ on Leah's balance sheet.

• A)$27,000; $30,000
• B)$27,000; $34,500
• C)$30,000; $30,000
• D)$30,000; $35,000

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Definitions:

Atheism

The absence or lack of belief in the existence of deities or gods.

Agnosticism

The belief that the existence or non-existence of deities or other spiritual phenomena is unknown or unknowable.

Religious Service Attendance

the act of participating in gatherings or ceremonies organized by a religious institution, often reflecting personal faith or communal worship practices.

Secularization

is the process by which religious institutions, practices, and beliefs lose their social significance.