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.

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Definitions:

Complex Vision

Refers to an advanced or intricate ability to interpret visual information, understand visual relationships, and perceive detailed visual stimuli.

Prefrontal Cortex

A region at the front of the brain associated with complex behaviors, decision making, and regulating social behavior.

Organizing Movements

Refers to the coordination of muscle actions or activities to perform a specific task in a structured manner.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem-solving, and controlling behavior.