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

question 16

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 Equipment in a consolidation at December 31,2011,assuming the book value at that date is still $80,000?

• A)$70,000.
• B)$73,500.
• C)$75,000.
• D)$76,500.
• E)$80,000.

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Definitions:

Heat Loss

The transfer of thermal energy from a warmer object to a cooler one, resulting in a decrease in the temperature of the warmer object.

Air Movement

The flow or motion of air, often relevant in contexts of ventilation, weather, and aerodynamics.

Convection

The transfer of heat through the movement of fluids or gases, typically observed in the atmosphere or liquids.

Temperature Regulation

The physiological process that allows an organism to maintain its core internal temperature within a narrow range, regardless of external temperature.