Fox Co Acquired 60% of Sox Co $\begin{array} { l c } \text { Parent-company extension } & \text { Entity } \\\end{array}$

question 24

Short Answer

Fox Co. acquired 60% of Sox Co. for $900,000. At the acquisition date, Sox had net assets with a book value of $950,000 and a fair value of $1,200,000. What is the amount of goodwill that should be reported on the consolidated SFP under the parent-company extension method and under the entity method? $\begin{array} { l c } \text { Parent-company extension } & \text { Entity } \\\end{array}$
A) $\begin{array} { l c } &&&&\$ 0 &&&&&&& \$ 180,000 \\\end{array}$
B) $\begin{array} { l c } &&&& \$ 0 &&&&&&& \$ 300,000 \\\end{array}$
C) $\begin{array} { l c } &&&& \$ 120,000 &&&& \$ 180,000 \\\end{array}$
D) $\begin{array} { l c } &&&&\$ 300,000 &&&& \$ 300,000\end{array}$

• A) \(\begin{array} { l c } &&&&\$ 0 &&&&&&& \$ 180,000 \\\end{array}\)
• B) \(\begin{array} { l c } &&&& \$ 0 &&&&&&& \$ 300,000 \\\end{array}\)
• C) \(\begin{array} { l c } &&&& \$ 120,000 &&&& \$ 180,000 \\\end{array}\)
• D)\(\begin{array} { l c } &&&&\$ 300,000 &&&& \$ 300,000
• \end{array}\)

Calculate total product from marginal products.

Analyze scenarios to identify instances of increasing and diminishing marginal returns.

Distinguish between the short-run application of the law of diminishing returns and its implications.

Relate the concepts of marginal and average products to decision-making in production.

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Definitions:

Authoritative Parenting

A parenting style characterized by high responsiveness and high demands, balancing clear, firm expectations with emotional support and recognition of the child’s independence.

Inattentive

Describes a lack of attention or focus, often seen as a symptom in various attention disorders.

Negligent

Failing to take proper care in doing something, resulting in harm or damage to oneself or others due to carelessness.

Parenting Style

The manner in which parents raise their children, characterized by various patterns of attitudes, behaviors, and parenting practices.