Figure: The Financial Statements for Jode Inc. and Lakely Corp., Just

question 54

Essay

Figure:
The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31, 2010, follow. Lakely's buildings were undervalued on its financial records by $60,000. On December 31, 2010, Jode issued 54,000 new shares of its $10 par value stock in exchange for all the outstanding shares of Lakely. Jode's shares had a fairvalue on that date of $35 per share. Jode paid $34,000 to an investment bank for assisting in the arrangements. Jode also paid $24,000 in stock issuance costs to effect the acquisition of Lakely. Lakely will retain its incorporation.
-Determine consolidated Additional paid-in Capital at December 31, 2010.

Identify assignable variations and the factors that cause them.

Understand and apply the concepts of control charts, including centerline and control limits.

Recognize the indications of a process being in or out of control.

Understand the concepts of Type I and Type II errors in statistical process control.

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Definitions:

Legislative Rules

Regulations established by legislative bodies to guide the implementation and enforcement of laws.

Federal Administrative Agency

A body established by Congress that implements and enforces laws and regulations within a specific jurisdiction or area of federal responsibilities.

Interstate Commerce Commission

A regulatory agency in the United States created by the Interstate Commerce Act of 1887, originally tasked with regulating the railroads to ensure fair rates and to regulate other modes of transport.

Rule Making

The process by which government agencies formalize and enact regulations or standards that govern behavior within specific industries or areas.