How Cody Rudisell's decision might differ if he based it on Utilitarian approach versus individualism approach versus practical approach to ethical decision making and the approach he does appear to be using. Case Summary: Ken Bodine, the sales manager and the skills of the young sales staff he had hired were responsible for the rapid growth of Pace Technologies. Bodine had hired his top grads staff from two major business schools in the area. Apart from the top salaries offered by Pace, these top grads employees were attracted by the Bodine's positivity, reflected through his energy level, creative and innovative thinking and his positive and confident attitude towards work. Pace's sales force consistently stunned the competition outside with their efficient and high level performance. Interpretation: There would not have been much difference in Cody Rudisell's decision in case it base upon any three approaches namely; Utilitarian approach or individualism approach or practical approach.

Question

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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Chapter 4, Problem 3AYSCFCA

Summary Introduction

To determine:

How Cody Rudisell's decision might differ if he based it on Utilitarian approach versus individualism approach versus practical approach to ethical decision making and the approach he does appear to be using.

Case Summary:

Ken Bodine, the sales manager and the skills of the young sales staff he had hired were responsible for the rapid growth of Pace Technologies. Bodine had hired his top grads staff from two major business schools in the area. Apart from the top salaries offered by Pace, these top grads employees were attracted by the Bodine's positivity, reflected through his energy level, creative and innovative thinking and his positive and confident attitude towards work. Pace's sales force consistently stunned the competition outside with their efficient and high level performance.

Interpretation:

There would not have been much difference in Cody Rudisell's decision in case it base upon any three approaches namely; Utilitarian approach or individualism approach or practical approach.

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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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