On December 31, 20X8, Polaris Corporation acquired 100 percent ownership of Star Corporation. On that date, Star reported assets and liabilities with book values of $300,000 and $100,000, respectively, common stock outstanding of $50,000, and retained earnings of $150,000. The book values and fair values of Star's assets and liabilities were identical except for land which had increased in value by $10,000 and inventories which had decreased by $5,000.Based on the preceding information, what amount of goodwill will be reported if the acquisition price was $195,000?
A. $0
B. $35,000
C. $15,000
D. $40,000
Answer: A
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Mantle Company exchanged a used autograph-signing machine with Maris Company for a similar machine with less use. Mantle's old machine originally cost $50,000 and had accumulated depreciation of $40,000, as well as a market value of $40,000, at the time of the exchange. Maris' old machine originally cost $60,000 and at the time of the exchange had a book value of $30,000 and a market value of
$32,000 . Maris gave Mantle $8,000 cash as part of the exchange. The exchange lacked commercial substance. Mantle should record the cost of the new machine at a. $8,000. b. $10,000. c. $16,000. d. $32,000.
If other persons have an interest in a lawsuit, they may:
A) Consolidate. B) Intervene. C) Cross-complain. D) Cross-reply.
A person for purposes of membership in a partnership includes a natural person, a partnership, a limited partnership, a trust, an estate, an association, or a corporation
a. True b. False Indicate whether the statement is true or false
An individual or group health plan that provides or pays the cost of medical care may not:
A. be able to safeguard employee privacy. B. disclose protected health information. C. use the employer's ability to deny coverage for a preexisting condition. D. none of these.