REFERENCE: Ref.03_14 Jaynes Inc.obtained All of Aaron Co.'s Common Stock on January

question 121

Essay

REFERENCE: Ref.03_14
Jaynes Inc.obtained all of Aaron Co.'s common stock on January 1,2009,by issuing 11,000 shares of $1 par value common stock.Jaynes' shares had a $17 per share fair value.On that date,Aaron reported a net book value of $120,000.However,its equipment (with a five-year remaining life)was undervalued by $6,000 in the company's accounting records.Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patent to be amortized over ten years.
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-If this combination is viewed as an acquisition,what was consolidated patents as of December 31,2010?

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Definitions:

Reinforcement

In psychology, a process by which a behavior is strengthened or increased in frequency by the outcome that follows it.

Boss's Praise

Positive feedback or approval from someone's supervisor or employer, often serving as a motivational tool and a recognition of good work.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, pioneered by B.F. Skinner.