On December 31,20X8,Polaris Corporation Acquired 100 Percent Ownership of Star

question 50

Multiple Choice

On December 31,20X8,Polaris Corporation acquired 100 percent ownership of Star Corporation.On that date,Star reported assets and liabilities with book values of $300,000 and $100,000,respectively,common stock outstanding of $50,000,and retained earnings of $150,000.The book values and fair values of Star's assets and liabilities were identical except for land which had increased in value by $10,000 and inventories which had decreased by $5,000.
-Based on the preceding information,what amount of goodwill will be reported if the acquisition price was $195,000?

• A)$0
• B)$40,000
• C)$15,000
• D)$35,000

Recognize the importance of investment in accumulating capital goods.

Understand the scientific method's application to economics and its relevance in studying human behavior.

Understand the broad categories of economic resources and their examples.

Comprehend the concepts of marginal analysis and opportunity costs in economic decision-making.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries, affecting the price and availability of those goods.

Foreign-Produced Automobiles

Vehicles manufactured outside of one's home country, highlighting the global nature of the automotive industry.

Tariff

A tax imposed by a government on goods and services imported from other countries, often used to protect domestic industries from foreign competition.

International Trade

International Trade involves the exchange of goods and services across international boundaries, driven by the principles of comparative advantage and market demand.