On January 1, 2013, the Moody Company Entered into a Transaction

question 62

Multiple Choice

On January 1, 2013, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Note: Parentheses indicate a credit balance.
In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60.
Compute the amount of consolidated equipment at date of acquisition.

• A) $480.
• B) $580.
• C) $559.
• D) $570.
• E) $560.

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Definitions:

Procedural Justice Model

A theory in organizational behavior that focuses on the fairness of the processes used to make decisions.

Motivated To Perform

This refers to the condition where an individual shows enthusiasm or willingness to carry out tasks effectively due to intrinsic or extrinsic factors.

Goal-Related Tasks

Tasks that are directly tied to the accomplishment of specific objectives within an organization or project.

Goal-Directed Manner

Acting with intention and focus towards achieving a specific outcome or set of objectives.