On July 1, 2009, Ute Corporation paid $900,000 for 90% of Cougar Company's outstanding common stock. On that date, the costs and fair values of Cougar's recorded assets and liabilities were as follows: Cost Fair Value
Cash and Receivables 50,000 50,000
Inventory 230,000 300,000
Buildings and equipment (net) 200,000 350,000
Liabilities 80,000 120,000
Net assets 400,000 580,000

Give the information above, what is the portion of the purchase price that will be allocated to the differential?
a. $220,000
b. $400,000
c. $420,000
d. $240,000

Select the correct answer. after the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy? a. the interest rate on loans will fall. b. people will demand more foreign goods. c. people will start borrowing more money. d. the economy will face inflation. e. foreign investments will increase.