Pepe, Incorporated Acquired 60% of Devin Company on January 1

question 12

Multiple Choice

Pepe, Incorporated acquired 60% of Devin Company on January 1, 2012. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2012 and 2013, respectively. Pepe uses the equity method to account for its investment in Devin.
What is the gain or loss on equipment reported by Devin for 2012?

• A) $54,000 gain.
• B) $21,000 loss.
• C) $21,000 gain.
• D) $9,000 loss.
• E) $9,000 gain.

Understand the influence of emotional involvement in negotiation effectiveness.

Acknowledge the effects of public and private negotiations on making concessions.

Realize the strategic use of media relations to influence negotiation outcomes.

Learn the implications of constituency management and communication strategies on negotiation processes.

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Definitions:

Work Values

Beliefs and principles that guide individuals' attitudes towards work and influence their job satisfaction, career choices, and work behavior.

Perceptions

The way in which something is regarded, understood, or interpreted, influenced by individual experience and biases.

Evaluative Tendency

The predisposition of a person to judge something as good or bad in a consistent manner over time.

Specific Object

An identifiable entity distinguished by particular characteristics.