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

question 44

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 $300,000 in cash for Glen,at what amount would the subsidiary's Building be represented in a January 2,2009 consolidation?

• A)$200,000.
• B)$225,000.
• C)$273,000.
• D)$279,000.
• E)$300,000.

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Definitions:

Preoperational Children

A stage in Jean Piaget's theory of cognitive development, usually from ages 2 to 7, where children are beginning to engage in symbolic play but are not yet capable of logical thought.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others, and to understand that others have beliefs and perspectives different from one's own.

Passive Sentences

Sentences in which the subject receives the action, often characterized by the use of "by" to introduce the doer.

Active Ones

Individuals who are energetically involved in activities or the initiation of actions.