Morgan Bertone Chapter Two Multipy Choose Advanced Accounting 1. D- Larger firms being less likely to fail 2.

C- In form and substance the companies are one entity 3. C. A takeover completed within one year of the intial tender offer 4. B- Capitalize an asset 5. A. An intanglible asset under contractual- legal criterion 6. A- When a bargin purchase occurs 7. B - Reduced as an expense in the period ther merger takes place 8. C- the fair value of the contingent consideration us included in the overall fair value of the consideration transferred, and a liability or additional owners' equity is recognized. 9 B. 120,000 A/R Capitalized software costs Inprocess R/d Cash Goodwill Cash Liabilites 10 C. 192,000 and 300,000 Cash Common Stock APIC APIC Balance Retained Earning 11 A. 0 Cash and Receivables Inventory Patented Technololgy Land Building and Equipment Goodwill Liabilities Common Stock APIC

140,000 320,000 200,000 150,000 120,000 800,000 130,000

153,000 51,000 102,000 102,000 90,000 192,000 300,000

60,000 175,000 200,000 225,000 75,000 350,000 500,000 350,000

12 C Hill income for the past six months plau Loring's income for the past six months