The Following Information Pertains to Questions

question 29

Multiple Choice

The following information pertains to questions
On January 1,2009,Hanson Inc.purchased 54,000 of Marvin Inc.'s 90,000 outstanding voting shares for $240,000.On that date,Marvin's common stock and retained earnings were valued at $60,000 and $90,000 respectively.Marvin's book values approximated its fair values on the acquisition date with the exception of the company's equipment,which was estimated to have a fair market value that was $50,000 in excess of its recorded book value.The equipment was estimated to have a useful life of eight years.Both companies use straight line amortization exclusively.
On January 1,2010,Hanson purchased an additional 9,000 shares of Marvin Inc.on the open market for $45,000.On this date,Marvin's book values were equal to its fair market values with the exception of the company's equipment,which is now thought to be undervalued by $60,000.Moreover,the equipment's estimated useful life was revised to 4 years on this date.
Marvin's net Income and dividends for 2009 and 2010 are as follows: Marvin's goodwill was subject to an impairment loss of $5,000 during 2009.Hanson ABC Inc.uses the equity method to account for its investment in Marvin Inc.
-Assuming that Hanson had no recorded goodwill prior to January 1,2009,what would be the amount of goodwill appearing on Hanson' December 31,2009 consolidated balance Sheet?

• A)$80,000
• B)$75,000
• C)$89,900
• D)$195,000

Recognize behaviors that can negatively impact the immune system.

Understand the physiological implications of asthma and its effects on the human body.

Grasp the treatment approaches for illness anxiety disorder and their alignment with treatments for similar disorders.

Understand and explain the concept of cultural hegemony, including its effects on society.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to gauge if a stock is over- or under-valued.

Financial Analysis

The evaluation of a company's financial statements and other financial information to assess its performance, stability, profitability, and liquidity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.