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

question 78

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.
-In consolidation, the total amount of expenses related to Kailey, and to Denber's acquisition of Kailey, for 2010 is determined to be

• A) $153,750.
• B) $161,250.
• C) $205,000.
• D) $210,000.
• E) $215,000.

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Definitions:

Variation

The measure of the spread or dispersion of a set of values.

Standard Error Of Estimate

A measure of the accuracy of predictions made with a regression line, specifically, it estimates the standard deviation of the error term.

Coefficient Of Determination

A measure used in statistical analysis to assess the goodness of fit of a model, represented as the proportion of variance in the dependent variable that is predictable from the independent variable(s).

Pearson Correlation Coefficient

A measure of the linear correlation between two variables X and Y, giving a value between -1 and 1 which indicates the strength and direction of the correlation.