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Racer Corp

question 121

Multiple Choice

Racer Corp. acquired all of the common stock of Tangiers Co. in 2009. Tangiers maintained its incorporation. Which of Racer's account balances would vary between the equity method and the initial value method?


Definitions:

Actor-observer Effect

A bias in attribution theory where people tend to attribute their own actions to situational factors but others' actions to personal traits.

Voluntary

An action taken out of free will or choice, without compulsion or obligation.

Coerced

The act of compelling or forcing someone to act in a certain way by use of pressure or threats.

Internal Attributions

The process of assigning the cause of behavior to personal aspects such as traits, abilities, or feelings.

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