Bullen Inc

question 116

Multiple Choice

Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 20X1. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) follow, along with the book value of Bullen's accounts: Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In addition, Bullen paid $35,000 for secretarial and management time allocated to the acquisition transaction. What will be the balance in consolidated goodwill?

• A) $0.
• B) $20,000.
• C) $35,000.
• D) $55,000.
• E) $65,000.

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Definitions:

Strategic Layout Decision

Decisions related to the physical arrangement of business resources to optimize processes and efficiency.

Inventory

The quantity of goods and materials on hand, typically in a warehouse or point of sale, waiting to be sold or used in production.

Servicescape

The physical surroundings in which a service takes place, and how they affect customers and employees.

Work Cell

An arrangement of machines and personnel that focuses on making a single product or family of related products.