Pail, Inc. holds 100 percent of the common stock of Shovel Company, an investment acquired for $680,000. Immediately following the combination, Pail's net assets have a book value of $1,150,000 and a fair value of $1,390,000. The book value and the fair value of Shovel's net assets on the date of combination are $400,000 and $550,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared.Based on the information given above, what will be the amount of net assets reported in the consolidated balance sheet, prepared immediately following the combination?
A. $1,150,000
B. $1,700,000
C. $1,830,000
D. $1,550,000
Answer: A
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If a company uses the direct write-off method of accounting for bad debts,
a. It is applying the matching principle. b. It will record bad debt expense only when an account is determined to be uncollectible. c. It will reduce the accounts receivable account at the end of the accounting period for estimated uncollectible accounts. d. It will report accounts receivable in the balance sheet at their net realizable value.
Able Bakers sells cooking supplies and training services. Under a contract with Putnam Restaurants, Able will provide $60,000 of supplies and three months of training for $2,000 per month. Able's right to receive consideration for cooking supplies is conditional upon providing one month of training services before they can bill the customer for the supplies. When Able delivers the supplies on the
first day of training services, Able will recognize A) $60,000 receivable. B) $60,000 contract liability. C) $60,000 contract asset. D) $60,000 unearned revenue.
Identify the complaint database developed by the U.S. Federal Trade Commission
a. Consumer Watch b. Fraud Watchdog c. Consumer Sentinel d. Identity Theft Assistance
Individual items on a semantic differential scale may be scored on either a -3 to +3 or a 1 to 7 scale
Indicate whether the statement is true or false