Management
Management
13th Edition
ISBN: 9780133935813
Author: Stephen P. Robbins; Mary A. Coulter
Publisher: Pearson Education (US)
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Chapter 9, Problem 13ED
Summary Introduction

To determine:

The factors that influence the business to take the decision to trace the behavior of the consumer.

Introduction:

The organizations are engaged in the tracing of the consuming behavior of the consumers by online and physical stores. This allows the companies to cater to your best needs and interests and in order to gain the competitive advantage may be involved in tracking the data and information in order to assess consumer’s interests, buying behavior, etc. This hence leads the organizations to develop an understanding of the needs and requirements of a customer and the organizations can hence deliver on their interest.

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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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