Solved

REFERENCE: Ref.03_01 On January 1,2009,Cale Corp.paid $1,020,000 to Acquire Kaltop Co.Kaltop Maintained

question 62

Multiple Choice

REFERENCE: Ref.03_01
On January 1,2009,Cale Corp.paid $1,020,000 to acquire Kaltop Co.Kaltop maintained separate incorporation.Cale used the equity method to account for the investment.The following information is available for Kaltop's assets,liabilities,and stockholders' equity accounts:
SHAPE \* MERGEFORMAT
$REFERENCE: Ref.03_01 On January 1,2009,Cale Corp.paid $1,020,000 to acquire Kaltop Co.Kaltop maintained separate incorporation.Cale used the equity method to account for the investment.The following information is available for Kaltop's assets,liabilities,and stockholders' equity accounts: SHAPE \* MERGEFORMAT Kaltop earned net income for 2009 of $126,000 and paid dividends of $48,000 during the year. -At the end of 2009,the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co.for A) $124,400. B) $126,000. C) $127,000. D) $76,400. E) $0.$ Kaltop earned net income for 2009 of $126,000 and paid dividends of $48,000 during the year.
-At the end of 2009,the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co.for

Definitions:

Socialization Roles

The behaviors and expectations that are learned by individuals to fit into their society, including roles based on their age, gender, and social position.

Active

Being engaged in action or exerting power or force; not passive.

Social Development

The process by which individuals acquire the values, behaviors, and skills necessary to function effectively in society.

Differentiated

Having developed a specialized form or function from an initial homogenous state, often in the context of cells or organisms adapting to specific roles.