The projected available in period four is:

________ is the degree to which a firm or individual utilizes borrowed money to make money

A) Variable leverage B) Fixed leverage C) Operating leverage D) Financial leverage

Capitol Company decided to sell one of its subsidiaries, Subsidiary ABC. BiRite Inc, is the purchaser of this subsidiary. The selling price for Subsidiary ABC is $2,000,000. BiRite performed a valuation analysis of Subsidiary's ABC assets acquired and liabilities. The following table presents book values from Subsidiary ABC financial statements and fair values determined by BiRite:

Description Book Value Fair Value Inventory 420,000 $450,000 Accounts Receivable 330,000 330,000 Prepaid Assets 70,000 60,000 Equipment 290,000 410,000 Building Lease 330,000 360,000 Patent - 220,000 Trademark - 150,000 Current Liabilities 125,000 125,000 Lease Obligation 170,000 170,000 Other Long-term Liabilities 135,000 135,000 a. Prepare the journal entry made by BiRite to record the acquisition of Subsidiary ABC. b. Describe how the journal entry would be different if the acquisition prices was $1 million. What will be an ideal response?