Fact Pattern 20-2

question 71

Multiple Choice

Fact Pattern 20-2
Technical Support Corporation uses its office equipment as collat?eral for a loan from United Bank.The bank files a financing statement with the secretary of state in the state in which Technical Support was chartered.One year later,Technical Support changes its name to Vector,Inc.
-Refer to Fact Pattern 20-2.To continue the effectiveness of its original fil?ing,United Bank must

• A)file a continuation statement after the original filing expires.
• B)file a continuation statement before the original filing expires.
• C)file a new financing statement within four months of the name change.
• D)repossess the equipment that served as collateral for the loan.

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Definitions:

Excess Consideration

The amount paid over the fair value of net assets during an acquisition, often recorded as goodwill on the balance sheet.

Equipment Undervalued

A situation in which the book value of equipment is recorded at less than its fair market value.

Partial Equity Method

A method of accounting for investments where the investor recognizes its share of the profits and losses of the investee, to the extent of its initial investment, in its financial statements.

Noncontrolling Interest

A portion of equity (ownership) interest in a subsidiary not owned by the parent company, reflecting the share of the subsidiary not attributable directly to the parent company's shareholders.