Author: Anonymous

Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2020. At that date, Glen owns only three assets and has no liabilities:     Book Value Fair Value Land $ 40,000   $ 50,000   Equipment (10-year life)   80,000     75,000   Building (20-year life)   200,000     300,000     If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary’s Equipment in consolidation at December 31, 2022?                         A)    $(5,000).             B)    $80,000.            C)    $75,000.            D)    $73,500.            E)    $(3,500).

Luffman Inc. owns 30% of Bruce Inc. and appropriately applies the equity method. During the current year, Bruce bought inventory costing $52,000 and then sold it to Luffman for $80,000. At year-end, all of the merchandise had been sold by Luffman to other customers. What amount of gross profit on intra-entity sales must be deferred by Luffman?

If a country is a net importer, then this means it has a net inflow of capital investment. 

A 28-year-old client who is pregnant with her first child reports increased dental caries (cavities) since becoming pregnant. How should the nurse explain the likely cause for this change?

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger’s accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins’s accounts:     Wilkins Book Value Granger Book Value Granger Fair Value Retained earnings, 1/1/21 $ 250,000 $ 240,000     Cash and receivables   170,000   70,000 $ 70,000 Inventory   230,000   180,000   210,000 Land   320,000   220,000   240,000 Buildings (net)   480,000   240,000   280,000 Equipment (net)   120,000   90,000   90,000 Liabilities   650,000   440,000   430,000 Common stock   360,000   80,000     Additional paid-in capital   60,000   40,000       Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding stock of Granger. What is the consolidated balance for Land as a result of this acquisition transaction?                         A)    $500,000.                        B)    $550,000.            C)    $540,000.            D)    $560,000.            E)    $530,000.

Kaye Company acquired 100% of Fiore Company on January 1, 2021. Kaye paid $1,000 excess consideration over book value, which is being amortized at $20 per year. There was no goodwill in the combination. Fiore reported net income of $400 in 2021 and paid dividends of $100.Assume the equity method is applied. How much equity income will Kaye report on its internal accounting records as a result of Fiore’s operations?

A 15-year-old high school student is brought to the emergency room by his father because of the sudden onset of excruciating pain in his right testicle. The pain started 2 hours prior and has gotten worse in intensity. He denies fever, chills, or urethral discharge. He is not sexually active. On physical examination, the testicle is swollen and tender to palpation. It appears to be retracted upward in the scrotum. He has no other evidence of infection. What is your most likely diagnosis?

Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green’s accounts have been omitted.     Green   Vega Revenues $ 900,000     $ 500,000   Cost of goods sold   360,000       200,000   Depreciation expense   140,000       40,000   Other expenses   100,000       60,000   Equity in Vega’s income   ?           Retained earnings, 1/1/2023   1,350,000       1,200,000   Dividends   195,000       80,000   Current assets   300,000       1,380,000   Land   450,000       180,000   Building (net)   750,000       280,000   Equipment (net)   300,000       500,000   Liabilities   600,000       620,000   Common stock   450,000       80,000   Additional paid-in capital   75,000       320,000     Green acquired 100% of Vega on January 1, 2019, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2019, Vega’s land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment.Compute the December 31, 2023, consolidated trademark.                         A)    $50,000.              B)    $46,875.            C)    $0.            D)    $34,375.            E)    $37,500.

You are assessing Mike, age 16, after a football injury to his right knee. You elicit a positive anterior/posterior drawer sign. This test indicates an injury to the:

When a country exports more than it imports, it will have a trade surplus.