REFERENCE: Ref.05_02 On January 1,2009,Pride,Inc.bought 80% of the Outstanding Voting Common Stock

question 97

Multiple Choice

REFERENCE: Ref.05_02
On January 1,2009,Pride,Inc.bought 80% of the outstanding voting common stock of Strong Corp.for $364,000.Of this payment,$28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000.Any remaining excess was attributable to goodwill which has not been impaired.
As of December 31,2009,before preparing the consolidated worksheet,the financial statements appeared as follows:
During 2009,Pride bought inventory for $112,000 and sold it to Strong for $140,000.Only half of this purchase had been paid for by Strong by the end of the year.60% of these goods were still in the company's possession on December 31.
-What is the total of consolidated operating expenses?

• A)$42,000.
• B)$47,600.
• C)$53,200.
• D)$48,000.
• E)$36,400.

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Definitions:

Stem Cells

Undifferentiated cells that have the potential to develop into different cell types, used in medical research and treatment.

Differentiate

To recognize or ascertain what makes someone or something distinct or different compared to others.

Cellular Signaling

The complex system of communication that governs basic cellular activities and coordinates cell actions, crucial for the body's functioning and response to the environment.

Differentiation

Involves the process of becoming distinct or specialized in structure or function, often used in the context of cells in biology or elements within a system.