Varton Corp

question 100

Essay

Varton Corp. acquired all of the voting common stock of Caleb Co. on January 1, 2013. Varton owned some land with a book value of $84,000 that was sold to Caleb for its fair value of $120,000. How should this transaction be accounted for by the consolidated entity?

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Definitions:

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the back, involved in transmitting neural signals between the brain and the rest of the body.

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the environment into internal electrical impulses for the brain.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary bodily functions like heartbeat and digestion.