Barstow company is contemplating the acquistion of the net assets of crown company for $875,000 cash. to complete the transaction, acquisition costs are $15,000. the balance sheet of crown company on the purchase date is as follows:

barstow company
balance sheet, december 31, 2015
assets liabilities and equity
current assets $80,000 liabilities $100,000
land $70,000 common stock ($10 par) $100,000
building $450,000 paid-in capital in excess of par $150,000
accumulated depreciation-building (200,000) retained earning $250,000
equipment $300,000
accumulated depreciation-equipment (100,000)
total assets $600,000 total liabilities and equity $600,000

the following fair values have been obtained for crown's identifiable assets and liabilities:

current assets $85,000
land $90,000
building $300,000
equipment $275,000
liabilities $102,000

1. record the acquisition of the net assets of crown company on barstow company's books.
2. record the sale of the net assets on the books of crown company.
3. record the acquisition of 100% of the common stock of crown company on barstow's books. crown company will remain a separate legal entity.

Acustomer has come to your department with an urgent question. you promised her that you would collect information about her question and answer it by noon. it will take you at least 20 minutes to gather the information needed to provide an answer. it is now 11: 50 a.m. your supervisor just scheduled a 30-minute meeting to start at noon. this meeting is for all employees in your department. you decide to:

Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)