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.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, as well as drives like those related to hunger and sex.

Cerebral Hemispheres

The two halves of the brain, each responsible for different functions and cognitive processes.

Brainstem

The central trunk of the mammalian brain, connecting the brain with the spinal cord and controlling vital functions such as breathing and heart rate.

Emotion-linked

Refers to phenomena or responses that are directly connected to or influenced by one's emotions.