REFERENCE: Ref 01_01 On January 3,2008,Austin Corp.purchased 25% of the Voting Common Stock

question 111

Multiple Choice

REFERENCE: Ref 01_01
On January 3,2008,Austin Corp.purchased 25% of the voting common stock of Gainsville Co. ,paying $2,500,000.Austin decided to use the equity method to account for this investment.At the time of the investment,Gainsville's total stockholders' equity was $8,000,000.Austin gathered the following information about Gainsville's assets and liabilities:
SHAPE \* MERGEFORMAT
For all other assets and liabilities,book value and fair value were equal.Any excess of cost over fair value was attributed to goodwill,which has not been impaired.
-For 2008,what is the total amount of excess amortization for Austin's 25% investment in Gainsville?

• A)$27,500.
• B)$20,000.
• C)$30,000.
• D)$120,000.
• E)$70,000.

Identify the steps involved in the B2B buying process, including RFP creation, proposal analysis, and vendor selection.

Recognize the significance of need recognition as the first step in both B2B and B2C buying processes.

Understand the role of vendor performance assessment in the B2B buying process.

Identify the formal procedures involved in inviting bids from suppliers.

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Definitions:

Substitutes Availability

The presence of alternative products or services that consumers can turn to when the price of a good increases or its quality decreases.

Supply Curves

A graph that shows the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale at that price.

Long-Run Supply

The relationship between the price of a product and the quantity of the product a firm is willing to supply, considering all inputs are variable and adjusting to new market conditions over time.

Resource Supply

The total availability of resources, such as raw materials, labor, and capital, which can be used for production.