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frosja888 [35]
3 years ago
5

On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the

two companies immediately after the stock acquisition are as follows:
Tower Corp. Brown Company
Item Book Value Fair Value
Cash $ 34,000 $ 24,000 $ 24,000
Accounts Receivable 48,000 28,000 28,000
Inventory 98,000 24,000 29,000
Buildings & Equipment (net) 136,000 65,000 85,000
Investment in Brown Stock 175,000
Total $ 491,000 $ 141,000 $ 66,000
Accounts Payable $ 24,000 $ 4,000 $ 4,000
Bonds Payable 139,000 12,000 12,000
Common Stock 41,000 20,000
Retained Earnings 287,000 105,000
Total $ 491,000 $ 141,000 $ 16,000
Required:
a. Prepare the consolidating entries required to prepare a consolidated balance sheet immediately after the acquisition of Brown Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Business
1 answer:
Blababa [14]3 years ago
3 0

Answer:

The answer is attached below

Explanation:

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Answer:

The correct answer is firewall monitoring.

Explanation:

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5 0
3 years ago
Jeremy is an effective leader who is capable of helping his subordinates complete their tasks. However, he is considered intimid
I am Lyosha [343]

Answer:

Transactional leadership style

Explanation:

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7 0
3 years ago
Bauer's Supply Chain Management Student Organization provides networking opportunities and dinner meetings with hiring managers,
givi [52]

Answer:

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6 0
3 years ago
What is the idea behind “cutting taxes” (lowering taxes). select one:
earnstyle [38]
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8 0
3 years ago
. Stock X has a beta of 0.5 and Stock Y has a beta of 1.5. Which of the following statements must be true, according to the CAPM
KiRa [710]

Answer:

c. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount

This statement is correct because an increase in inflation is a risk which will be reflected by an increase in the risk free rate. Also increase Beta is that sensitivity of the stocks to the market risk premium, and having different betas does not affect the the increase in expected rate of return caused by inflation.

Explanation:

a. If you invest $50,000 in Stock X and $50,000 in Stock Y, your 2-stock portfolio would have a beta significantly lower than 1.0, provided the returns on the two stocks are not perfectly correlated

This statement is wrong because if you invest 50,000 in stock X and 50, 000 in stock B you will have a beta of 1

50,000/100,000=0.5

(0.5*1.5)+(0.5*0.5)=0.75+0.25=1

b. Stock Y's realized return during the coming year will be higher than Stock X's return

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d. Stock Y's return has a higher standard deviation than Stock X.

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If the market risk premium declines, but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y.

This statement is wrong because stock y has a bigger beta than stock x which means that when the risk premium declines stock y will have a larger decline.

5 0
2 years ago
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