Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $6,387,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,125,000 including retained earnings of $1,625,000.

At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary:

Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends:

No asset impairments have occurred since the acquisition date.

Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.

Required:

1. Determine the fair value in excess of book value for Allison's acquisition date investment in Mathias.

2. Prepare a worksheet to determine the consolidated values to be reported on Allison’s financial statements.

Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $6,387,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,125,000 including retained earnings of $1,625,000.

At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary:

Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends:

No asset impairments have occurred since the acquisition date.

Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.

Required:

1. Determine the fair value in excess of book value for Allison's acquisition date investment in Mathias.

2. Prepare a worksheet to determine the consolidated values to be reported on Allison’s financial statements.

Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $5,957,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,020,000 including retained earnings of $1,520,000. At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary: Consideration transferred $ 5,957,000 Mathias stockholders' equity 2,020,000 Excess fair over book value $ 3,937,000 to unpatented technology (8-year remaining life) $ 832,000 to patents (10-year remaining life) 2,540,000 to increase long-term debt (undervalued, 5-year remaining life) (120,000 ) 3,252,000 Goodwill $ 685,000 Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends: Income Dividends 2020 $ 472,500 $ 25,000 2021 945,000 50,000 No asset impairments have occurred since the acquisition date. Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Allison Mathias Income Statement Sales $ (6,480,000 ) $ (3,920,000 ) Cost of goods sold 4,556,000 2,513,000 Depreciation expense 895,000 289,000 Amortization expense 440,000 109,000 Interest expense 63,000 64,000 Equity earnings in Mathias (611,000 ) 0 Net income $ (1,137,000 ) $ (945,000 ) Statement of Retained Earnings Retained earnings 1/1 $ (5,380,000 ) $ (1,967,500 ) Net income (above) (1,137,000 ) (945,000 ) Dividends declared 560,000 50,000 Retained earnings 12/31 $ (5,957,000 ) $ (2,862,500 ) Balance Sheet Cash $ 81,000 $ 149,000 Accounts receivable 970,000 235,000 Inventory 1,740,000 805,000 Investment in Mathias 6,631,500 0 Equipment (net) 3,740,000 2,066,000 Patents 105,000 0 Unpatented technology 2,145,000 1,470,000 Goodwill 439,000 0 Total assets $ 15,851,500 $ 4,725,000 Accounts payable $ (694,500 ) $ (162,500 ) Long-term debt (1,000,000 ) (1,200,000 ) Common stock (8,200,000 ) (500,000 ) Retained earnings 12/31 (5,957,000 ) (2,862,500 ) Total liabilities and equity $ (15,851,500 ) $ (4,725,000 ) Required: Determine the fair value in excess of book value for Allison's acquisition date investment in Mathias. Prepare a worksheet to determine the consolidated values to be reported on Allison’s financial statements.

Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $5,998,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,030,000 including retained earnings of $1,530,000.

At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary:

Post acquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends:

No asset impairments have occurred since the acquisition date.

Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period

Total liabilities and equity$(15,952,250) $(4,760,000)

1. Determine the fair value in excess of book value for Allison's acquisition date investment in Mathias.

2. Prepare a worksheet to determine the consolidated values to be reported on Allison’s financial statements.

Bonita Company purchased machinery on January 1, 2020, for $87,200. The machinery is estimated to have a salvage value of $8,720 after a useful life of 8 years.

Compute 2020 depreciation expense using the double-declining-balance method.

Compute 2020 depreciation expense using the double-declining-method method assuming the machinery was purchased on September 1, 2020.

Quintiles Transnational: Dennis Gillings founded Quntiles Transnational in 1982 when he realized that drug companies were great at inventing new medicines but not particularly good at analyzing the vast amounts of data that came out of clinical trials. He thought drug testing should be broken down into a series of standardized steps and he signed up a network of doctors interesting in enrolling patients in clinical trials. In the ten years leading up to 2010, Quintiles had conducted 4,700 trials on 2.7 million patients.

Quintiles also established a large contract sales organization (CSO) to support its pharmaceutical company clients. Large pharmaceutical companies, faced with cost pressures as well as the costs of maintaining their own sales forces, have increasingly turned to CSOs like the Innovex division of Quintiles, PDI Inc., or inVentive Health to provide variable cost “flex reps” as an alternative to adding the fixed cost they would incur if they added to their own sales forces. CSOs are widely used in therapeutic areas that require somewhat less scientific knowledge, like respiratory, dermatology, and lifestyle. The growth rate in contract sales and marketing was projected at 35% to 2015.

Question:  What are the risks of using or not using the CSO arm of Quintiles. 150 words or more.

1) Which of the following forces is providing vast amounts of data for AI applications?

                a. reading abilities

                b. cloud computing

                c. deep learning

                d. network-connected smart devices

2) Jason is looking at his budgets and decides he needs to lower labor costs. Which task is most likely to become automated with AI?

                a. New employee trainer

                b. assembly line worker

c. middle manager

d. computer programmer

3) All of these are examples of AI in a self-driving car EXCEPT ________.

                a. GPS

                b. tunnel vision

                c. LIDAR

4) Which of the following is true of Software as a Service?

                a. It requires the installation of specialized interfaces at the client end

                b. It allows clients to access services on an as-needed basis

                c. It involves fixed monthly and yearly costs for the services

                d. It requires an organization to maintain and develop the software

What is the type of unemployment in the following scenario? State the unemployment type and explain in a few sentences why it is the case.

1 After completing a complex computer programming project, Tetsuo got fired from his work. His prospects for a new job requiring a similar set of skills are good, and he has signed up with a job placement service for a programmer. He has declined offers for low-paying jobs.

2 When Akira and his co-workers refused to accept any pay cuts, his employer started to outsource the programming jobs to low-paid workers in another country. This outsourcing is happening throughout the programming industry.

3 Due to the current economic slowdown, Kaneda has been laid off from his programming job. His boss promises to rehire him when business picks up.

Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company.

What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Exhibit 8-9

a. Julie paid $2,400 to the day care center and her AGI is $50,000 (all salary).

b. Julie paid $6,000 to the day care center and her AGI is $50,000 (all salary).

c. Julie paid $5,000 to the day care center and her AGI is $25,000 (all salary).

d. Julie paid $2,400 to the day care center and her AGI is $14,000 (all salary).

e. Julie paid $5,000 to the day care center and her AGI is $14,000 ($2,400 salary and $11,600 unearned income).

1. Create a strongly typed enumerator for the days of the week, and put it in a header file enum.h

2. Create a test program with a switch statement that has a function that prints the day word based on numeric input from the user.  

3. Utilize the local predefined variable __func__ to display the name of the current function.

Student Learning Outcomes:

• Create and utilize strongly typed enumerators

• Correctly implement scope resolution for strongly typed enumerators

• Cast variable types for proper comparisons

• Display the current function’s name

STYLE NOTE: enumerators are constant, so many people think that the entire enumerator value (e.g. sunday) should be in all caps. Others follow the rule that since the variable type is created by the programmer, it should start with an uppercase letter. You may choose either one, but be consistent. I happen to use the first as it gives a clear visual indicator that it is a special variable.