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

question 75

Multiple Choice

If Watkins pays $450,000 in cash for Glen, what amount would be represented as the subsidiary's Equipment in a consolidation at December 31, 2019, assuming the book value of the equipment at that date is still $80,000?

• A) $70,000.
• B) $73,500.
• C) $75,000.
• D) $76,500.
• E) $80,000.

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Definitions:

Interstate Commerce

The exchange of goods, services, or money between parties in different states, governed by federal law in the United States.

Create A Monopoly

The practice or situation where a single company or entity exclusively controls a particular market, limiting competition and possibly leading to higher prices and less innovation.

Sherman Act

A foundational United States antitrust law aimed at maintaining fair competition in the marketplace by prohibiting monopolies, cartels, and anticompetitive practices.

Unreasonable Restraint

Restrictions or practices that excessively limit trade or competition beyond what is considered fair or legal.