Puddle Corporation Acquired All the Voting Stock of Soggi Company

question 14

Essay

Puddle Corporation acquired all the voting stock of Soggi Company for $500,000 on January 1, 2014 when Soggi had Capital Stock of $300,000 and Retained Earnings of $150,000. The book value of Soggi's assets and liabilities were equal to the fair value except for the plant assets. The entire cost-book value differential is allocated to plant assets and is fully depreciated on a straight-line basis over a 10-year period.
During 2014, Puddle borrowed $25,000 on a short-term non-interest-bearing note from Soggi, and on December 31, 2014, Puddle mailed a check to Soggi to settle the note. Soggi deposited the check on January 5, 2015, but receipt of payment of the note was not reflected in Soggi's December 31, 2014 balance sheet.
Required:
Complete the consolidation working papers for the year ended December 31, 2014.

Analyze the factors that contribute to group cohesiveness and performance.

Compare and contrast observational methods and self-report methods and discuss their strengths and weaknesses.

Explain the multilevel processes involved in group dynamics and cohesion.

Develop theoretical models to explain social phenomena such as leadership selection within groups.

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Definitions:

Alternative

This often refers to a choice or option among a set of possibilities, commonly used in various contexts to denote an option different than the mainstream or current choice.

α

A symbol often used to represent the significance level in hypothesis testing, indicating the probability of rejecting a true null hypothesis.

T

Often refers to the T-statistic in statistical tests, used to determine if there is a significant difference between two groups.

Confidence Interval

A range of values, derived from the sample data, that is believed to cover the true population parameter with a specified level of confidence.