These Questions Are Based on the Following Information and Should

question 42

Multiple Choice

These questions are based on the following information and should be viewed as independent situations.
Popper Co. acquired 80% of the common stock of Cocker Co. on January 1, 2009, when Cocker had the following stockholders' equity accounts.

To acquire this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been measured for impairment annually and has not been determined to be impaired as of January 1, 2012.
On January 1, 2012, Cocker reported a net book value of $1,113,000 before the following transactions were conducted. Popper uses the equity method to account for its investment in Cocker, thereby reflecting the change in book value of Cocker.
On January 1, 2012, Cocker reacquired 8,000 of the outstanding shares of its own common stock for $34 per share. None of these shares belonged to Popper. How would this transaction have affected the additional paid-in capital of the parent company?

• A) $0.
• B) decrease it by $32,900.
• C) decrease it by $45,700.
• D) decrease it by $49,400.
• E) decrease it by $50,500.

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Definitions:

Leadership Variables

The various factors that influence leadership effectiveness, including personal traits, situational factors, and leadership style.

Managerial Grid

A framework used in organizational behavior to evaluate and categorize a manager's concern for production and people.

Leadership Effectiveness

The degree to which a leader is successful in achieving desired results through the direction and coordination of others.

Low Concern

A state or situation in which there is little to no interest or emphasis placed on a particular issue or element.