Figure:
on January 1, 2010, Cale Corp Kaltop Earned Net Income for 2010 of $126,000 and Paid

question 58

Multiple Choice

Figure:
On January 1, 2010, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts: $$\begin{array} { l r r } & \begin{array} { r } \text { Book } \\\text { Value }\end{array} & \begin{array} { r } \text { Fair } \\\text { Value }\end{array} \\\text { Current assets } & \$ 120,000 & \$ 120,000 \\\text { Land } & 72,000 & 192,000 \\\text { Building (twenty year life) } & 240,000 & 268,000 \\\text { Equipment (ten year life) } & 540,000 & 516,000 \\\text { Current liabilities } & 24,000 & 24,000 \\\text { Long-term liabilities } & 120,000 & 120,000 \\\text { Common stock } & 228,000 & \\\text { Additional paid-in capital } & 384,000 & \\\text { Retained earnings } & 216,000 &\end{array}$$ Kaltop earned net income for 2010 of $126,000 and paid dividends of $48,000 during the year.
-At the end of 2010, the consolidation entry to eliminate Cale's accrual of Kaltop's earnings would include a credit to Investment in Kaltop Co. for

• A) $124,400.
• B) $126,000.
• C) $127,000.
• D) $76,400.
• E) $0.

Discern the various pre-Columbian civilizations of the Americas and their cultural, social, and political structures.

Examine the influence of geography and environmental factors on pre-Columbian societies and European explorers.

Understand the consequences of the Columbian exchange on both the Old and New Worlds.

Explore the role of gender in shaping societies in Africa, Mesoamerica, and North America during the fifteenth century.

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Definitions:

Productive Resource

A Productive Resource is any input used in the production of goods or services, including labor, capital, and natural resources.

Aggregate Demand Curve

A visual depiction that illustrates the connection between the general level of prices and the aggregate demand for goods and services within an economy.

Price Level

The mean value of current prices for all goods and services produced within an economy, commonly utilized as a gauge for inflation.

Potential Level

An economic term referring to the highest level of output an economy can achieve when utilizing all its resources efficiently without triggering inflation.