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.

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Definitions:

Abusive Supervision

A form of leadership behavior where a supervisor engages in the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact.

Norm of Reciprocity

A social rule that suggests individuals should repay, in kind, what another has provided or done for them.

Equivalence

The condition of being equal or equivalent in value, function, meaning, or status.

Informal Leaders

Individuals who influence others within an organization but do not hold official authority or positions of leadership.