Primo Corporation acquired 60 percent of Secondo Corporation's voting common stock. On the date of acquisition, Primo had equipment with a book value of $50,000 and a fair value of $150,000. Secondo's buildings and equipment had a book value of $200,000 and a fair value of $200,000 at the time of the acquisition. What will be the amount at which buildings and equipment will be reported in consolidated statements immediately following the acquisition?
A. $230,000
B. $250,000
C. $200,000
D. $150,000
Answer: B
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One company's practice is to provide bonuses to salespeople who exceed their sales targets. Which of the following advantages of budgeting enables the company to establish its recognition program?
A. Coordination B. Performance measurement C. Planning D. Corrective action
Which one of the following is not an accurate statement regarding the direct write-off method of accounting for bad debts?
a. The direct write-off method has some deficiencies when accounting for bad debts. b. The direct write-off method ignores the possibility that partial collection of a company's outstanding accounts receivable may occur. c. Under the direct write-off method, an expense is increased. d. The allowance method for bad debts violates the matching principle, but the direct write-off method does not.
Typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability?
a. Working capital b. Current ratio c. Acid test d. Cash ratio e. Days' sales in receivables
Cadot Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process400 Percent complete with respect to materials90%Percent complete with respect to conversion70% Units started into production during the month18,000 Work in process, ending: Units in process600 Percent complete with respect to materials80%Percent complete with respect to conversion40% Required:Using the weighted-average method, determine the equivalent units of production for materials and conversion costs.
What will be an ideal response?