Strong Company Has Had Poor Operating Results in Recent Years

question 24

Multiple Choice

Strong Company has had poor operating results in recent years and has a $160,000 net operating loss carry-forward. Leader Corp. pays $700,000 to acquire Strong and is optimistic about its future profitability potential. The book value and fair value of Strong's identifiable net assets is $500,000 at date of acquisition. Strong's tax rate is 30% and Leader's tax rate is 40%. What is goodwill resulting from this business combination?

• A) $40,000.
• B) $88,000.
• C) $104,000.
• D) $152,000.
• E) $248,000.

Identifying effective strategies for modifying behavior using operant conditioning.

Recognizing the significance of discriminative stimuli in operant conditioning.

Describing the process and effects of shaping in learning new behaviors.

Understanding the role of primary and conditioned reinforcers.

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Definitions:

Complements

Goods or services that are used together, where the increase in consumption of one leads to an increase in consumption of the other.

Substitutes

Goods or services that can be used in place of one another; an increase in the price of one leads to an increase in demand for the other.

Related Goods

Products or services that are connected by consumer preferences or demand, such as substitutes and complements.

Price Decreases

Occurs when the cost of a good or service drops, often due to factors like increased supply, reduced demand, or competitive market pressures.