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REFERENCE: Ref.03_05 Perry Company Obtains 100% of the Stock of Hurley Corporation

question 31

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REFERENCE: Ref.03_05
Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance;
SHAPE \* MERGEFORMAT
$REFERENCE: Ref.03_05 Perry Company obtains 100% of the stock of Hurley Corporation on January 1,2009,for $3,800 cash.As of that date Hurley has the following trial balance; SHAPE \* MERGEFORMAT Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used. -Compute the amount of Hurley's buildings that would be reported on a December 31,2009,consolidated balance sheet. A) $1,560. B) $1,260. C) $1,440. D) $1,160. E) $1,140.$ Any excess of consideration transferred over fair value is considered goodwill with an indefinite life.FIFO inventory valuation method is used.
-Compute the amount of Hurley's buildings that would be reported on a December 31,2009,consolidated balance sheet.

Definitions:

SML

Stands for the Security Market Line, which represents the expected return of a market portfolio as a function of systematic, or market, risk.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss.

Portfolio Beta

Portfolio Beta is a measure of the overall systematic risk of a portfolio of investments relative to the market as a whole.

Exchange-Traded Fund

An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product, the shares of which are traded on stock exchanges.