EBK UNDERSTANDING MANAGEMENT
EBK UNDERSTANDING MANAGEMENT
11th Edition
ISBN: 9781337918770
Author: MARCIC
Publisher: VST
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Chapter 10, Problem 6DQ
Summary Introduction

To determine:

Factors affecting decline in Job satisfaction for employees in an organization and role of Mangers in changing this trend.

Introduction:

Most of the organizations in today's corporate world see a trend of decline in job satisfaction for employees. There can be various reasons for this and to understand them in detail. Also are there any steps that Managers can take in changing this trend.

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EXERCISE 3-5     Treasury Stock Held by Subsidiary LO 8Pool Company purchased 90% of the outstanding common stock of Spruce Company on December31, 2019, for cash. At that time the balance sheet of Spruce Company was as follows:Current assets $1,050,000Plant and equipment 990,000Land 170,000Total assets $2,210,000Liabilities $ 820,000Common stock, $20 par value 900,000Other contributed capital 440,000Retained earnings 150,000Total 2,310,000Less treasury stock at cost, 5,000 shares 100,000Total equities $2,210,000Required:Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on December 31, 2019, assuming:(1) The purchase price of the stock was $1,400,000. Assume that any difference between thebook value of net assets and the value implied by the purchase price relates to subsidiary land.(2) The purchase price of the stock was $1,160,000. Assume that the subsidiary land has a fairvalue of $180,000, and the other assets and liabilities are…
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