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NEW QUESTION: 1
Jason Bennett is an analyst for Valley Airlines (Valley), a U.S. firm. Valley owns a stake in Southwest Air Cargo (Southwest), also a U.S. firm. The two firms have had a long-standing relationship. The relationship has become even closer because several of Valley's top executives hold seats on Southwest's Board of Directors.
Valley acquired a 45% ownership stake in Southwest on December 31, 2007. Acquisition of the ownership stake cost $9 million and was paid in cash. Valley's stake in Southwest is such that management can account for the investment using either the equity method or the acquisition method. While Valley's management desires to fairly represent the firm's operating results, they have assigned Bennett to assess the impact of each method on reported financial statements.
Immediately prior to the acquisition. Valley's current asset balance and total equity were $96 million and
$80 million, respectively. Southwest's current assets and total equity were $32 million and $16 million, respectively.
While analyzing the use of the equity method versus the acquisition method, Bennett calculates the return on assets (ROA) ratio. He arrives at two conclusions:
Statement 1: Compared to the acquisition method, the equity method results in a higher ROA because of the higher net income under the equity method.
Statement 2: Compared to the acquisition method, the equity method results in a higher ROA because of the smaller level of total assets under the equity method.
In order to get a better picture of Valley's operating condition, Bennett is also considering the use of proportionate consolidation to account for Southwest. He makes the following statements regarding the acquisition method and a proportionate consolidation:
Statement 3: Both methods are widely accepted under the provisions of U.S. GAAP and International Financial Reporting Standards (IFRS).
Statement 4: Both methods report the same level of assets on the parent's balance sheet.
Statement 5: Both methods report all of Southwest's liabilities on the parent's balance sheet.
In addition. Valley has always wanted to pursue its goal of vertical integration by expanding its scope of operations to include the manufacturing of airline parts for its own airplanes. Therefore, it established a subsidiary, Mountain Air Parts (Mountain), in Switzerland on January 1,2008. Switzerland was chosen as the location for economic and geographical diversification reasons. Mountain will operate as a self- contained, independent subsidiary. Local management in Switzerland will make the majority of operating, financing, and investing decisions.
The Swiss franc (CHF) is the official currency in Switzerland. On January 1, 2008, the USD/CHF exchange rate was 0.77. At December 31, 2008, the exchange rate had changed to 0.85 USD/CHF. The average exchange rate in 2008 was 0.80 USD/CHF. In its first year of operations. Mountain paid no dividends and no taxes. Mountain uses the FIFO assumption for its flow of inventory.

The balance of Valley's current assets as of December 31, 2007, using the acquisition method, is closest to:
A. $128 million.
B. $87 million.
C. $119 million.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Consolidated current assets are equal to $119 million ($96 Valley current assets - $9 cash for investment in Southwest + $32 Southwest current assets). (Study Session 5. LOS 21.a)

NEW QUESTION: 2
管理者は、人気のあるITソリューションを迅速に展開し、すぐに使用を開始する必要があります。
管理者はどこで支援を見つけることができますか？
A. AWSクイックスタートリファレンスのデプロイ
クイックスタートは、AWSソリューションアーキテクトとパートナーによって構築され、セキュリティと高可用性に関するAWSのベストプラクティスに基づいて、AWSに人気のあるテクノロジーをデプロイするのに役立ちます。これらのアクセラレーターは、数百の手動手順をわずか数ステップに削減するため、実稼働環境を迅速に構築して、すぐに使用を開始できます。
B. Amazon CloudFront
C. AWSの適切に設計されたフレームワークのドキュメント
D. AWS CodeCommit
Answer: A

NEW QUESTION: 3
Lab Simulation - OSPF
A sporting goods manufacturer has decided to network three(3) locations to improve efficiency in inventory control. The routers have been named to reflect the location: Boston, Frankfurt, Lancaster. The necessary networking has been completed at each location, and the routers have been configured with single area OSPF as the routing protocol. The Boston router was recently installed but connectivity is not complete because of incomplete routing tables. Identify and correct any problem you see in the configuration.
Note: The OSPF process must be configured to allow interfaces in specific subnets to participate in the routing process.

Answer:
Explanation:
The question mentioned Boston router was not configured correctly or incomplete so we should check this router first. Click on Host B to access the command line interface (CLI) of Boston router.
Boston>enable (type cisco as its password here)
Boston#show running-config

First, remember that the current OSPF Process ID is 2 because we will need it for later configuration. Next notice that in the second "network" command the network and wildcard mask are 192.168.155.0 and 0.0.0.3 which is equivalent to 192.168.155.0 255.255.255.252 in term of subnet mask. Therefore this subnetwork's range is from 192.168.155.0 to 192.168.155.3 but the ip address of s0/0 interface of Boston router is192.168.155.5 which don't belong to this range -> this is the reason why OSPF did not recognize s0 interface of Boston router as a part of area 0.
So we need to find a subnetwork that s0 interface belongs to.
IP address of S0 interface: 192.168.155.5/30
Subnet mask: /30 = 1111 1111.1111 1111.1111 1111.1111 1100
Increment: 4
Network address (which IP address of s0 interface belongs to):
192.168.155.4 (because 4 * 1 = 4 < 5)
Therefore we must use this network instead of 192.168.155.0 network
Boston#configure terminal
Boston(config)#router ospf 2
Boston(config-router)#no network 192.168.155.0 0.0.0.3 area 0
Boston(config-router)#network 192.168.155.4 0.0.0.3 area 0
Boston(config-router)#end
Boston#copy running-config startup-config
Finally, you should issue a ping command from Boston router to Lancaster router to make sure it works well.
Boston#ping 192.168.43.1