The Following Information Applies to Questions 41-45

question 24

Multiple Choice

The following information applies to Questions 41-45
On January 1, 20X6, Polka Co. (Polka) and Strauss Co. (Strauss) had condensed balance sheets as follows:
On January 2, 20X6, Polka borrowed $90,000 and used the proceeds to acquire 90% of the outstanding common shares of Strauss. This debt is payable in ten equal annual principal and accrued interest payments beginning December 30, 20X6. On the acquisition date, the fair value of Strauss was $100,000, and the excess cost of the investment over Strauss's carrying amount of acquired net assets should be allocated 60% to inventory and 40% to goodwill.
-Current liabilities on the January 2,20X6,consolidated balance sheet should be:

• A) $49,000
• B) $30,000
• C) $40,000
• D) $50,000

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Definitions:

ABS Modulation Cycle Rates

The frequency at which an Anti-lock Braking System (ABS) activates and releases brake pressure to prevent wheel lockup during braking.

Pneumatic Brake Systems

Brake systems that use compressed air to create the braking force applied to stop the vehicle.

Power Line Carrier (PLC)

Term used to describe communication transactions delivered through the auxiliary (blue) power line in a seven-wire tractor-trailer electrical connection. Signals are converted to radio frequencies for the transaction and subsequently decoded by the receiver ECU. The means used to enable trailer ABS to communicate with the tractor electronics.

Multiplexing

A technique used in communications to combine multiple signals or streams of information into one, for the purpose of sharing a physical medium.