Assume that Brave Pharmaceuticals acquired Tangent Therapeutics at the end of 2022.    This acquisition was accomplished by paying a total of $900,000,000 in cash to acquire all 10 million shares of Tangent's outstanding common stock from Tangent's shareholders.  This purchase price of $90 per share represented a 40% premium over Tangent's share price immediately prior to the acquisition. Below is information on the fair market value (at the time of the acquisition) and historical cost (as listed on Tangent's pre-acquisition balance sheet) for all of the separately identifiable assets and liabilities acquired from Tangent: Account Name Fair Market Value Historical Cost (on Tangent's Pre-Acquisition Balance Sheet) Inventory $ 15,000,000 $ 10,000,000 Intangible Assets $ 200,000,000 $0 Property, Plant, and Equipment $ 20,000,000 $ 10,000,000 Current Liabilities $ 5,000,000 $ 5,000,000 Notes Payable $ 20,000,000 $ 20,000,000 How will the Intangible Assets (other than goodwill) of Tangent be recorded in the journal entry that Brave will make at the time of the acquisition:Single choice

A

Brave will debit Intangible Assets for $200,000,000.

B

Brave will credit Intangible Assets for $200,000,000.

C

Brave is not permitted to record the Intangible Assets of Tangent.

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On 1 May 2024 Dachshund Ltd completed a successful acquisition for Beagles Ltd. At the date of acquisition all the net assets of Beagles Ltd was at fair value except for the following:   Carrying amount Fair value Inventory $75,000 $105,000   The inventory was sold during the financial year ended 30 June 2025. What consolidation adjustment is required at 30 June 2025 in relation to the revalued inventory?

Question textAcquisitions achieved in stages (step acquisitions) Assume that a parent company gains control over its subsidiary with the purchase of a 45% interest for $180,000. Prior to this transaction, the parent’s Equity Investment account reports a balance of $112,000 on the acquisition date and represents a 35% interest in the subsidiary. The fair value of 100% of the subsidiary on the date the parent obtains control of the subsidiary is $400,000 (assume no premium for control). Prepare the journal entries to record the acquisition. [table] Description | Debit | Credit Answer 1APICCashCommon stockEquity incomeEquity investmentGain on revaluation of subsidiaryGoodwillNet income attributable to noncontrolling interestNoncontrolling interestRetained earningsCorrectMark 1.00 out of 1.00 | Answer 2CorrectMark 1.00 out of 1.00 | Answer 3CorrectMark 1.00 out of 1.00 Answer 4APICCashCommon stockEquity incomeEquity investmentGain on revaluation of subsidiaryGoodwillNet income attributable to noncontrolling interestNoncontrolling interestRetained earningsCorrectMark 1.00 out of 1.00 | Answer 5CorrectMark 1.00 out of 1.00 | Answer 6CorrectMark 1.00 out of 1.00 To record purchase. | | Answer 7APICCashCommon stockEquity incomeEquity investmentGain on revaluation of subsidiaryGoodwillNet income attributable to noncontrolling interestNoncontrolling interestRetained earningsCorrectMark 1.00 out of 1.00 | Answer 8CorrectMark 1.00 out of 1.00 | Answer 9CorrectMark 1.00 out of 1.00 Answer 10APICCashCommon stockEquity incomeEquity investmentGain on revaluation of subsidiaryGoodwillNet income attributable to noncontrolling interestNoncontrolling interestRetained earningsCorrectMark 1.00 out of 1.00 | Answer 11CorrectMark 1.00 out of 1.00 | Answer 12CorrectMark 1.00 out of 1.00 To record write-up. | | [/table]

When one company buys a controlling interest in another company on April 1 (assuming a calendar year). How should the pre-acquisition subsidiary revenues and expenses be disclosed in the consolidated balances for the year of acquisition?

Section F: Read the text on the four-day working week and answer the following questions. 1. The concept of a four-day work week, where employees keep 100% of their salary and work 80% of their former hours while maintaining 100% productivity, has gained global attention. It is called the 100:80:100 model. Successful productivity in this model has been defined as an increase of approximately 20% in productivity per employee per hour worked. Various trials have been conducted to assess whether this model is practical and has significant benefits. The trials to date have been conducted on small and medium-sized organisations only. They indicate positive outcomes for both employers and employees across various industries. However, challenges, and the need for further trials will determine if the model should be adjusted to fit most, if not all business sectors. 2. These initiatives are most often led by management. They are aimed at addressing employee burnout, boosting productivity, and attracting and retaining the best possible employees. A number of companies which were using the model were surveyed, and no loss of productivity was found. In fact, 70% of the companies surveyed reported higher productivity levels than before the change. Additionally, improvements in recruitment and retention of employees were noted in 60% of the surveyed companies. The most welcome outcome was that 50% of the companies surveyed reported significant reductions in absenteeism, or the regular absence from work without a proper reason. 3. The additional day off provides employees with time for relaxation and recovery. Employees feel less stressed and experience reduced burnout. The four-day work week helps alleviate work-family conflicts and mitigate the Sunday-evening anxiety associated with the approaching start to the working week. Given the high levels of stress in workplaces, these findings have significant implications for employee wellbeing. Similar outcomes were experienced by employees with a permanent scheduled long weekend as well as those who had a break in the middle of their working week. 4. Despite the reported benefits, some organisations have faced challenges when implementing a four-day work week. A significant barrier is the reluctant feelings top managers can have when considering implementing the model. The main obstacle remains the fear that fewer hours worked would lead to lower productivity. To address these concerns, it is essential to gather evidence from trials, including large-scale international trials involving diverse industries. Additional evidence of the model’s success will calm the critics and lead to broader acceptance. 5. There are questions about whether this model is appropriate for application across all sectors of the economy. As yet, technology companies have most commonly adopted the model. There is some concern that their positive experiences may not directly translate to other sectors, for example manufacturing, which requires machines to keep running, a trade counter open to the public and around-the-clock deliveries. Manufacturing workers do not have the option of working from home, as there always needs to be a minimum number of staff on site. Public services also have different business profiles and demands. In these sectors reduced working hours may require overtime payments or additional staffing, which would not be acceptable to most employers. 6. Many firms which have implemented the model have achieved a significant gain in productivity per employee per hour worked. However, it is not clear if these gains in productivity are sustainable for the long term. They require employees to work more intensely, which may not be feasible for employees to maintain over the length of their careers. 7. It is likely that the four-day work week will gradually spread to workplaces and sectors with realistic productivity gains. Employers and sectors that do not offer reduced hours will eventually face difficulties attracting and retaining high-quality employees. They will be forced to reduce work hours so as to continue to run a competitive business. However, the pace of such changes will depend on economic growth, productivity trends, and labour market conditions. 8. The concept of a four-day work week has attracted attention and provided positive outcomes. International companies have displayed the potential benefits of reduced hours in terms of productivity, employee wellbeing and recruitment and retention of key employees. However, challenges remain, including the uncertainty of managers and considerations relating to certain sectors. Continued trials, involving diverse industries, missing from the original trials, will provide valuable insights for decision-makers considering the adoption of the 100:80:100 model. Questions 25 – 29 Complete this summary of the last two paragraphs of the text by filling in each blank with ONE WORD from the text. The 100:80:100 model will most likely 25. Answer Question 13[input] to more fields of work with productivity improvements. Businesses which continue with the traditional working week could have 26. _____ , and may be forced to agree to the model. They would need to do this to stay 27. _____ . The advantages of a reduced working week have been revealed by 28. _____businesses. Future trials of the concept must include those 29. ____ not surveyed in the first

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