Kaye Company Acquired 100% of Fiore Company on January 1

question 110

Multiple Choice

Kaye Company acquired 100% of Fiore Company on January 1, 2011. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2011 and paid dividends of $100.
-Assume the initial value method is applied. How much will Kaye's income increase or decrease as a result of Fiore's operations?

• A) $400 increase.
• B) $300 increase.
• C) $380 increase.
• D) $100 increase.
• E) $210 increase.

---

Definitions:

Method Association

Relates to how a method is linked or connected to classes or objects in object-oriented programming.

Late Binding

In object-oriented programming, the process where a method call is resolved at runtime rather than compile time, enabling polymorphism.

Methods Marked

Functions within a class that have been identified or annotated for special processing or behavior, often through annotations.

Final

A keyword in many programming languages used to declare a constant value or to prevent method overriding or inheritance of a class.