REFERENCE: Ref.03_12 Watkins,Inc.acquires All of the Outstanding Stock of Glen Corporation on Corporation

question 57

Multiple Choice

REFERENCE: Ref.03_12
Watkins,Inc.acquires all of the outstanding stock of Glen Corporation on January 1,2009.At that date,Glen owns only three assets and has no liabilities:
-If Watkins pays $450,000 in cash for Glen,what amount would be represented as the subsidiary's Building in a consolidation at December 31,2011,assuming the book value at that date is still $200,000?

• A)$200,000.
• B)$285,000.
• C)$290,000.
• D)$295,000.
• E)$300,000.

---

Definitions:

Modern Development

Contemporary advancements and improvements in various fields such as technology, science, and social structures.

Cosmetic Psychopharmacology

The use of psychiatric drugs to enhance cognitive and emotional function in individuals without mental illness.

Genetic Underclass

A hypothetical group of people discriminated against based on their genetic characteristics or predispositions.

Non-Prescription Drugs

Medications that can be purchased without a doctor's prescription, also known as over-the-counter (OTC) drugs.