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

question 93

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 the transaction instead occurred on January 1,2008 under a SFAS 141 purchase combination,and Watkins pays $300,000 in cash for Glen,at what amount would the subsidiary's Equipment be represented in a December 31,2011 consolidation?

• A)$48,000.
• B)$50,000.
• C)$52,000.
• D)$77,000.
• E)$80,000.

---

Definitions:

Fundamentalist Christianity

A conservative movement within Christianity that emphasizes literal interpretations of sacred texts and adherence to traditional Christian doctrines.

Sociological Perspective

A viewpoint that involves looking at social life in a scientific, systematic way to understand the patterns and structures that shape society.

Human Life

The existence of an individual human being from birth to death, including physical, social, and cultural experiences that define each person's unique identity.

Society

A community of people living in a particular country or region and having shared customs, laws, and organizations.