Which of the following methods of valuing an asset is based on the amount that would be paid for it in markets where the asset would ordinarily be acquired?
a. Replacement cost
b. Entry value
c. Exit value
d. Both a and b
ANSWER: D
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A. cooperative orientation B. individualistic orientation C. competitive orientation D. distracted orientation
Which of the follow is the most likely result of a process that limits the output of a system?
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On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired.As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows: Pride, Inc. Strong Corp.Revenues$420,000 $280,000 Cost of goods sold (196,000) (112,000)Operating expenses (28,000) (14,000)Net income$196,000) $154,000 Retained earnings, 1/1/18$420,000 $210,000 Net income (above) 196,000 154,000 Dividends paid 0 0 Retained earnings,
12/31/18$616,000 $364,000 Cash and receivables$294,000 $126,000 Inventory 210,000 154,000 Investment in Strong Corp 364,000 0 Equipment (net) 616,000 420,000 Total assets$1,484,000 $700,000 Liabilities$588,000 $196,000 Common stock 280,000 140,000 Retained earnings, 12/31/18 (above) 616,000 364,000 Total liabilities and stockholders' equity$1,484,000 $700,000 ??During 2018, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession.?What is the consolidated total for inventory at December 31, 2018? A. $280,000. B. $347,200. C. $364,000. D. $336,000. E. $349,300.