Figure:
Bullen Inc -Assume That Bullen Paid a Total of $480,000 in Cash

question 85

Multiple Choice

Figure:
Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 20X1. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) follow, along with the book value of Bullen's accounts: $\begin{array}{lrrr}&\text { Bullen } & \text { Vicker } & \text { Vicker } \\&\text { Book } & \text { Book } & \text { Fair } \\&\text { Value } & \text { Value } & \text { Value }\\\text { Retained earnings, 1/1/X1 } & \$ 250,000 & \$ 240,000 & \\\text { Cash and receivables } & 170,000 & 70,000 & \$ 70,000 \\\text { Inventory } & 230,000 & 170,000 & 210,000 \\\text { Land } & 280,000 & 220,000 & 240,000\\\text { Buildings (net) } & 480,000 & 240,000 & 270,000 \\\text { Equipment (net) } & 120,000 & 90,000 & 90,000 \\\text { Liabilities } & 650,000 & 430,000 & 420,000 \\\text { Common stock } & 360,000 & 80,000 & \\\text { Additional paid-in capital } & 20,000 & 40,000 &\end{array}$
-Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In addition, Bullen paid $35,000 to a group of attorneys for their work in arranging the combination to be accounted for as an acquisition. What will be the balance in consolidated goodwill?

• A) $0.
• B) $20,000.
• C) $35,000.
• D) $55,000.

Evaluate one's own time management strategies and make adjustments for continuous improvement.

Understand the circumstances under which the Statute of Frauds requires certain contracts to be in writing to be enforceable.

Recognize the principle of the standard construction rule and how courts interpret contracts.

Identify the requirements and legal implications of online and electronic contracts including 'click-on agreements'.

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Definitions:

Intercept Term

A constant in a regression model that represents the value of the dependent variable when all independent variables are zero.

Statistically Significant

A term indicating that an observed effect in a study is unlikely to have occurred due to chance alone, according to a predetermined threshold for significance.

Asymmetric Risk

A situation where the outcomes of a decision or investment have different potentials for gains and losses.

Symmetric Risk

A situation in decision-making where the potential upside and downside risks are similar in magnitude.