Denber Co Acquired 60% of the Common Stock of Kailey Corp

question 107

Multiple Choice

Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2010. For 2010, Kailey reported revenues of $810,000 and expenses of $630,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000.


-Kailey in consolidated net income for 2010?

• A)$31,000.
• B)$33,000.
• C)$55,000.
• D)$60,000.
• E)$39,000.

Evaluate the impact of price changes on the consumption decisions of individuals with specific utility functions.

Identify perfect substitutes and complements from given utility functions.

Calculate the optimal consumption bundle given budget constraints and prices.

Interpret consumer behavior through marginal rate of substitution and indifference curve analysis.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Operating Cash Flows

Cash generated from a company's normal business operations.

Customer Satisfaction Rating

A metric that quantifies how satisfied a customer feels with a product, service, or experience.

Leading Indicator

An economic or financial metric that predicts future trends and changes in economic cycles or the performance of an industry or market.