On January 1, 2010, Palk Corp

question 52

Multiple Choice

On January 1, 2010, Palk Corp. and Spraz Corp. had condensed balance sheets as follows: On January 2, 2010, Palk borrowed the entire $84,000 it needed to acquire 80% of the outstanding common shares of Spraz. The loan was to be paid in ten equal annual principal payments, plus interest, beginning December 31, 2010. The excess consideration transferred over the underlying book value of the acquired net assets was allocated 60% to inventory and 40% to goodwill.
-What is consolidated current liabilities at January 2, 2010?

• A) $53,200.
• B) $56,000.
• C) $64,400.
• D) $42,000.
• E) $70,000.

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Definitions:

Responsiveness-Enhancing

Approaches or strategies designed to increase an individual's willingness to react or respond to stimuli or situations.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Psychoanalytic Theory

A set of theories originating from the work of Sigmund Freud, focusing on unconscious motivations and conflicts as drivers of human behavior.

Neodissociation Theory

A psychological theory suggesting that during hypnosis, consciousness is divided or dissociates into different streams, allowing for activities and experiences to occur independently of each other.