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The Following Information Pertains to Questions

question 41

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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.
-What effect (if any) would Hanson's January 1,2010 purchase have on the company's consolidated cash flows for the year?

Definitions:

Rehearsal Loop

A cognitive process in which information is repeated mentally to keep it in short-term memory longer.

Conceptual Hierarchy

An organized structure of concepts, ranging from the most general to the most specific, that helps in understanding and organizing knowledge.

Executive Control System

The component of the brain responsible for regulating attention, making decisions, and managing cognitive processes required for goal-directed behavior.

Sensory Memory

The shortest-term element of memory which allows individuals to retain impressions of sensory information after the original stimuli have ended.