REFERENCE: Ref.03_08 Goehler,Inc.acquires All of the Voting Stock of Kenneth,Inc.on January 4,2009,at

question 118

Multiple Choice

REFERENCE: Ref.03_08
Goehler,Inc.acquires all of the voting stock of Kenneth,Inc.on January 4,2009,at a price in excess of Kenneth's fair value.On that date,Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life) .Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life) .On December 31,2010,Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.
-If Goehler applies the initial value method in accounting for Kenneth,what is the consolidated balance for the Equipment account as of December 31,2010?

• A)$1,080,000.
• B)$1,104,000.
• C)$1,100,000.
• D)$1,468,000.
• E)$1,475,000.

Calculate and interpret confidence intervals for matched-pair samples.

Understand the significance level (α) and its role in hypothesis testing and confidence intervals.

Demonstrate the ability to test hypotheses concerning differences in means and proportions between two populations.

Understand the assumptions underlying the statistical techniques used for the analysis of two populations.

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Definitions:

Fully Performed

Refers to a scenario where all terms and obligations of a contract have been met by all parties involved.

Executory

Describing a contract that has not yet been fully performed or completed by all involved parties.

Certified Public Accountant

A professional designation given to accountants who pass a standardized CPA exam and meet government-defined education and experience requirements.

Audit

A systematic examination or inspection of financial records, documents, or an entity's performance to ascertain accuracy and compliance.