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NEW QUESTION: 1
Voyager Inc., a primarily internet-based media company, is buying The Daily, a media company with exposure to newspapers, television, and the internet.

Voyager's acquisition of The Daily is The company's second major acquisition in its history. The previous acquisition was at the height of the merger boom in the year 2000. Voyager purchased the Dragon Company at a premium to net asset value, thereby doubling the company's size. Voyager used the pooling method to account for the acquisition of Dragon; however, because of FASB changes to the Business Combination Standard, Voyager will use the acquisition method to account for the Daily acquisition.

Voyager has made an all-cash offer of $45 per share to acquire The Daily. Wall Street is skeptical about the merger. While Voyager has been growing its revenues by 40% per year, The Daily's revenue growth has been less than 2% per year. Michael Renner. the CFO of Voyager, defends the acquisition by stating that The Daily has accumulated a large amount of tax losses and that the combined company can benefit by immediately increasing net income after the merger. In addition, Renner states that the New Voyager will eliminate the inefficiencies of the internet operations and thereby boost future earnings. Renner believes that the merged companies will have a value of $17.5 billion.
In the past, The Daily's management has publicly stated its opposition to merging with any company, a position management still maintains. As a result of this situation, Voyager submitted their merger proposal directly to The Daily's board of directors, while the firm's CEO was on vacation. Upon returning from vacation, The Daily's CEO issued a public statement claiming that the proposed merger was unacceptable under any circumstances.
Voyager used the pooling of inierests method when accounting for the 2000 acquisition of Dragon, rather than the acquisition method it would use today. Which of the following is least likely a feature of the pooling of interests method?
A. Operating results for prior periods are restated as though the two firms were always combined.
B. The pooling of interests method combines historic book values.
C. The pooling of interests method combines historic book values and fair values.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Historically, two accounting methods have been used for business combinations: (1) the purchase method and (2) the pooling-of-interests method. However, over the last few years, the pooling method has been eliminated from U.S. GAAP and IFRS. Now, the acquisition method is required.
The pooling-of-interests method, also known as uniting-of-interests method under IFRS, combined the ownership interests of the rwo firms and viewed the participants as equals-neither firm acquired the other. The assets and liabilities of the two firms were simply combined. Key attributes of the pooling method include the following:
* The two firms are combined using historical book values.
* Operating results for prior periods are restated as though the two firms were always combined.
* Ownership interests continue, and former accounting bases arc maintained.
Note that fair values played no role in accounting for a business combination using the pooling method- the actual price paid was suppressed from the balance sheet and income statement. (Study Session 5, LOS 21.c)

NEW QUESTION: 2
The probability that a leap will contain either 53 days or 53 Wednesdays
A. 3/7
B. 2/3
C. 1/2
D. 1/56. 2/5
Answer: C

NEW QUESTION: 3
Scenario:

A. Option B
B. Option A
C. Option C
D. Option D
Answer: C

NEW QUESTION: 4
Which of the following is true of the WAS Liberty profile?
A. Applications using the Liberty profile cannot be deployed into production onto WAS systems which support the full profile.
B. It does not support JMS (Java Messaging Service).
C. It loads only what is needed for the application, resulting in the smallest runtime memory footprint and fastest startup time.
D. It is supplied with the WAS Liberty Core edition only.
E. All of the above.
Answer: A
Explanation:
Reference:
http://www-01.ibm.com/common/ssi/cgibin/ssialias?infotype=an&subtype=ca&appname=gpateam&supplier=897&letternum=ENUS 213-446

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