:joe is one of the lead accountants for his company. last month he was pressured to prepare the financial reports more quickly than usual, which led to errors that went undetected. joe’s manager was very upset about this, and explained that he was negatively impacting the whole company with his mistakes. why does the manager react in this manner? a : in order to lower the company’s capital allocation, they need to have timely, reliable financial reports. b : in order to increase the productivity rate at the company and decrease the capital allocation, they need to have reliable financial reports. c : the resources at joe’s company are limited, and financial reports that are timely and reliable will attract investment capital. d : the resources at joe’s company are abundant, and correct financial reports will attract investment capital.

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inv entory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a. prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price. b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1