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

question 27

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:

$\begin{array}{lll}&\text {Book Value}&\text {Fair Value}\\\text { Cash } & \$ 10,000 & \$ 10,000 \\\text { Accounts Receivable } & 30,000 & 35,000 \\\text { Inventory } & 40,000 & 50,000 \\\text { Plant Assets } & \underline{60,000} & \underline{80,000} \\\text { Total Assets } & \underline{ \$ 140,000 }& \underline{\$ 175,000}\end{array}$
$\begin{array} { l l } \text { Liabilities } & \$ 25,000 &\$25,000\\\text { Capital Stock } & 100,000 \\\text { Retained Earnings } & 15,000\end{array}$ $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 parent company 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; $35,000 C) $30,000; $30,000 D) $30,500; $34,500$ Push-down accounting is used for the acquisition.
-Assume the parent company theory is used.On January 2,2014,Leah Company will report Goodwill of ________ and Accounts Receivable of ________ on Leah's balance sheet.

Comprehend the impact of environmental factors on DNA and genetic mutations.

Recognize the role of prenatal development in human growth and the influence of teratogens.

Acknowledge the significance of reflexes and physical development in newborn infants.

Understand the relationships between gene expression, genotype, and phenotype.

Definitions:

Economic Conditions

The state of the economy at a given time, influenced by factors such as GDP growth rates, unemployment levels, and inflation rates.

Short-Run Exposure

The risk faced by companies due to fluctuations in exchange rates that can affect their transactions and finances in the near term.

Translation Exposure

The risk that a company's financial statements can be affected by changes in exchange rates when they have operations in foreign currencies.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.