If Watkins Pays $450,000 in Cash for Glen, What Amount

question 30

Multiple Choice

If Watkins pays $450,000 in cash for Glen, what amount would be represented as the subsidiary's Building in a consolidation at December 31, 2019, assuming the book value of the building at that date is still $200,000?

• A) $200,000.
• B) $285,000.
• C) $290,000.
• D) $295,000.
• E) $300,000.

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Definitions:

Division of Labor

The allocation of different parts of a manufacturing process or task to different people, based on specialized skills, to increase efficiency.

Pre-agriculture Societies

Human communities that existed before the development of farming and agricultural practices, typically relying on hunting, gathering, and fishing for subsistence.

Jobs

Positions of employment where individuals are hired to perform specific duties in exchange for compensation.

Part-Time Work

Employment with fewer hours per week than a full-time job, often offering flexibility but with fewer benefits than full-time positions.