A patient who is taking long term estrogen therapy tells the nurse they have not stopped smoking. The patient asks what the big deal is. What is the best response by the nurse?

Magic Corporation acquired 90% of the common stock of Mini Company for $420,000. Magic Corporation previously held no equity interest in Mini. On the date of acquisition, the fair value of the noncontrolling interest was $45,000. On the acquisition date, the carrying amount of Mini’s identifiable net assets amounted to $300,000. However, Mini’s Inventory had a fair value that exceeded its carrying value by $60,000 while its Equipment had a fair value that exceeded its carrying value by $40,000. All other assets and liabilities had fair values that equaled their carrying values. What amount of Goodwill should be reported on Magic Corporation’s consolidated balance sheet immediately after the acquisition?

Immediately before entering into a business combination, Prescott Enterprises and Sylvestre Company reported the following stockholders’ equity accounts and balances: Sylvestre   Prescott Common stock ($1 par)  $180,000 $  45,000  Additional paid-in capital 90,000  20,000 Retained earnings  300,000  110,000                                                                                                                                                                             In connection with the business combination, Prescott issues 102,000 new shares of its common stock valued at $1.50 per share for all of the outstanding common stock of Sylvestre. Immediately afterward, what are the consolidated Additional Paid-In Capital and Retained Earnings figures, respectively?

When negotiating a business acquisition, buyers sometimes agree to pay extra amounts to sellers in the future if performance metrics are achieved over specified time horizons. How should buyers account for such contingent consideration in recording an acquisition?

 Which of the following does not indicate an investor company’s ability to significantly influence an investee?

In order to accomplish a business combination, Prescott Company acquired all the outstanding common shares of Sylvestre Company, a business entity, for cash equal to the carrying amount of Sylvestre’s net assets. The carrying amounts of Sylvestre’s assets and liabilities approximated their fair values at the acquisition date, except for the carrying amount of its building was more than fair value. In preparing Prescott’s year-end consolidated income statement, what is the effect of recording the assets acquired and liabilities assumed at fair value, and should goodwill amortization be recognized? Depreciation Expense Goodwill Amortization  

Pittman Corporation acquired for cash at $10 per share all 100,000 shares of the outstanding common stock of Geoghagan Company. The total fair value of the identifiable assets acquired minus liabilities assumed of Geoghagan was $1,400,000 on the acquisition date, including the fair value of its Property, Plant, and Equipment (its only non-current asset) of $250,000. The consolidated financial statements of Pittman and its wholly-owned subsidiary must reflect

What are the three periods of General Adaptation Syndrome?

Paul is 6’4” and weighs 220 pounds. One night he is leaving a bar when he is approached by a smaller man who begins to punch and kick at Paul. Paul crumples to the ground while the smaller man continues to hit him. Three people across the street see what is happening, but do not come to Paul’s aid. All of the following changes to the scenario above would tend to increase the probability that someone comes to help Paul EXCEPT:

On July 1, Preston Enterprises purchased for cash at $30 per share all 250,000 shares of the outstanding common stock of Sylvestre Company, a business entity. Sylvestre reported net assets on that date with a carrying amount of $6,000,000. This amount reflected acquisition-date fair values except for Property, Plant and Equipment, which had a fair value that exceeded its carrying amount by $800,000. In its July 1 consolidated balance sheet, what amount should Preston report as Goodwill?