Which One of the Following Will Increase Consolidated Retained Earnings

question 44

Multiple Choice

Which one of the following will increase consolidated retained earnings?

• A)An increase in the value of goodwill associated with a subsidiary subsequent to the parent's date of acquisition
• B)The amortization of a $10,000 excess in the fair value of a note payable over its recorded book value
• C)The depreciation of a $10,000 excess in the fair value of equipment over its recorded book value
• D)The sale of inventory by a subsidiary that had a $10,000 excess in fair value over recorded book value on the parent's date of acquisition

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Definitions:

Kant

A German philosopher in the 18th century known for critical philosophy, especially his Critique of Pure Reason.

Teleological Theory

An ethical theory that holds the consequences of an action as the basis for any judgment about the morality of that action.

Employee Loses

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Layoff's Effect

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