At the Date of Acquisition by a Parent Company,the Fair

question 66

Multiple Choice

At the date of acquisition by a parent company,the fair value of a subsidiary's fixed assets was larger than their book value.When preparing consolidated financial statements,the fixed assets of the subsidiary are ________ and depreciation expense is ________.

• A) decreased to fair value; decreased
• B) increased to fair value; increased
• C) not adjusted; not adjusted
• D) increased to fair value; not adjusted

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Definitions:

James-Lange Theory

A theory of emotion that suggests physical arousal precedes the experience of emotion, implying people feel emotions because they perceive their bodies' physiological responses.

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary body functions and responds to stress.

Conscious Experience

The awareness of internal or external existence, encompassing thoughts, feelings, and sensations.

General Bodily Arousal

A state of physical and psychological alertness, typically involving increased heart rate and energy, often as a response to stimuli or stress.