Tower Corporation's Controller Has Just Finished Preparing a Consolidated Balance

question 25

Multiple Choice

Tower Corporation's controller has just finished preparing a consolidated balance sheet,income statement,and statement of changes in retained earnings for the year ended December 31,2009.Tower owns 80 percent of Network Corporation's stock,which it acquired at underlying book value on November 1,2006.At that date,the fair value of the noncontrolling interest was equal to 20 percent of Network Corporation's book value.The following information is available:
Consolidated net income for 2009 was $160,000.
Network reported net income of $50,000 for 2009.
Tower paid dividends of $30,000 in 2009.
Network paid dividends of $10,000 in 2009.
Tower issued common stock on February,18,2009,for a total of $100,000.
Consolidated wages payable decreased by $6,000 in 2009.
Consolidated depreciation expense for the year was $15,000.
Consolidated accounts receivable decreased by $20,000 in 2009.
Bonds payable of Tower with a book value of $102,000 were retired for $100,000 on December 31,2009.
Consolidated amortization expense on patents was $10,000 for 2009.
Tower sold land that it had purchased for $75,000 to a nonaffiliate for $80,000 on June 10,2009.
Consolidated accounts payable decreased by $7,000 during 2009.
Total purchases of equipment by Tower and Network during 2009 were $180,000.
Consolidated inventory increased by $36,000 during 2009.
There were no intercompany transfers between Tower and Network in 2009 or prior years except for Network's payment of dividends.Tower uses the indirect method in preparing its cash flow statement.
-Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash used in investing activities for 2009?

• A)$180,000
• B)$100,000
• C)$255,000
• D)$110,000

Analyze the effects of inventory valuation errors on gross profit and prepare corrected income statements.

Apply inventory valuation methods to estimate the cost of ending inventory using the retail inventory method.

Identify locations in the body where beneficial bacteria can be found.

Understand the coding system for medical encounters related to specific diseases and conditions.

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Definitions:

Exchange

The act of giving one thing and receiving another, especially of the same type or value, in return.

Disequilibrium

The condition that exists in a market when the plans of buyers do not match those of sellers; a temporary mismatch between quantity supplied and quantity demanded as the market seeks equilibrium

Government Intervention

Actions taken by a government to influence or regulate various activities in its economy, which can include fiscal policy, monetary policy, tariffs, and regulation.

Mismatch

A situation where there is a discrepancy or lack of alignment between two or more factors, often leading to inefficiency.