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AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
[QUESTION]
3. Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue
to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be
recorded in
Copyright © 2018 McGraw-Hill Education. All rights reserved.

No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Page 2-2
A) A worksheet.
B) Lisa's general journal.
C) Victoria's general journal.
D) Victoria's secret consolidation journal.
E) The general journals of both companies.
Answer: A
Learning Objective: 02-07
Topic: Consolidation worksheet
Difficulty: 1 Easy
Blooms: Remember
[QUESTION]
4. Using the acquisition method for a business combination, goodwill is generally calculated as
the:
A) Cost of the investment less the subsidiary's book value at the beginning of the year.
B) Cost of the investment less the subsidiary's book value at the acquisition date.
C) Cost of the investment less the subsidiary's fair value at the beginning of the year.
D) Cost of the investment less the subsidiary's fair value at acquisition date.
E) Zero, it is no longer allowed under federal law.
Answer: D
Topic: Acquisition―Valuation principles
Topic: Acquisition―Calculate goodwill or bargain
Difficulty: 2 Medium
Blooms: Remember
[QUESTION]
5. Direct combination costs and amounts incurred to register and issue stock in connection with a
business combination. How should those costs be accounted for in a pre-2009 business
combination?
Direct Combination Costs Stock Issuance Costs
A) Increase Investment Decrease Investment
B) Increase Investment Decrease Additional Paid-in Capital
C) Increase Investment Increase Expenses
D) Decrease Additional Paid-in Capital Increase Investment
E) Increase Expenses Decrease Investment
Answer: B
Topic: Legacy methods―Purchase and pooling
Blooms: Remember

Page 2-3
[QUESTION]
6. How are direct and indirect costs accounted for when applying the acquisition method for a
business combination?
Answer: A
Learning Objective: 02-06b
Topic: Costs of combination
Difficulty: 1 Easy
Blooms: Remember
[QUESTION]
7. What is the primary difference between: (i) accounting for a business combination when the
subsidiary is dissolved; and (ii) accounting for a business combination when the subsidiary
retains its incorporation?
A) If the subsidiary is dissolved, it will not be operated as a separate division.
B) If the subsidiary is dissolved, assets and liabilities are consolidated at their book values.
C) If the subsidiary retains its incorporation, there will be no goodwill associated with the
acquisition.
D) If the subsidiary retains its incorporation, assets and liabilities are consolidated at their book
values.
E) If the subsidiary retains its incorporation, the consolidation is not formally recorded in the
accounting records of the acquiring company.
Answer: E
Learning Objective: 02-06a
Learning Objective: 02-06c
Topic: Business combination―Differentiate across forms
Topic: Journal entry―Dissolution
Topic: Journal entry―Investment with no dissolution
Blooms: Understand
[QUESTION]
8. According to GAAP, which of the following is true with respect to the pooling of interest
method of accounting for business combinations?
A) It was the only method used prior to 2002.

Page 2-4
B) It must be used for all new acquisitions.
C) GAAP allowed its use prior to 2002.
D) It, or the acquisition method, may be used at the acquirer’s discretion.
E) GAAP requires it to be used instead of the acquisition method for business combinations for
which $50 billion or more in consideration is transferred.
Answer: C
Difficulty: 1 Easy
Blooms: Remember
[QUESTION]
9. Which of the following examples accurately describes a difference in the types of business
combinations?
A) A statutory merger can only be effected through an asset acquisition while a statutory
consolidation can only be effected through a capital stock acquisition.
B) A statutory merger can only be effected through a capital stock acquisition while a statutory
consolidation can only be effected through an asset acquisition.
C) A statutory merger requires the dissolution of the acquired company while a statutory
consolidation requires dissolution of the companies involved in the combination following the
transfer of assets or stock to a newly formed entity.
D) A statutory consolidation requires dissolution of the acquired company while a statutory
merger does not require dissolution.
E) Both a statutory merger and a statutory consolidation can only be effected through an asset
acquisition but only a statutory consolidation requires dissolution of the acquired company.
Answer: C
Difficulty: 3 Hard
Blooms: Remember
[QUESTION]
10. Acquired in-process research and development is considered as
A) A definite-lived asset subject to amortization.
B) A definite-lived asset subject to testing for impairment.
C) An indefinite-lived asset subject to amortization.
D) An indefinite-lived asset subject to testing for impairment.
E) A research and development expense at the date of acquisition.
Answer: D
Topic: In-process research and development
Difficulty: 1 Easy
Blooms: Remember

Page 2-5
[QUESTION]
11. Which of the following statements is true regarding the acquisition method of accounting for
a business combination?
A) The combination must involve the exchange of equity securities only.
B) The transaction establishes an acquisition fair value basis for the company being acquired.
C) The two companies may be about the same size, and it is difficult to determine the acquired
company and the acquiring company.
D) The transaction may be considered to be the uniting of the ownership interests of the
companies involved.
E) The acquired subsidiary must be smaller in size than the acquiring parent.
Answer: B
Difficulty: 1 Easy
Blooms: Remember
[QUESTION]
12. With respect to recognizing and measuring the fair value of a business combination in
accordance with the acquisition method of accounting, which of the following should the acquirer
consider when determining fair value?
A) Only assets received by the acquirer.
B) Only consideration transferred by the acquirer.
C) The consideration transferred by the acquirer plus the fair value of assets received less
liabilities assumed.
D) The par value of stock transferred by the acquirer, and the book value of identifiable assets
transferred by the entity acquired.
E) The book value of identifiable assets transferred to the acquirer as part of the business
combination less any liabilities assumed.
Answer: C
Difficulty: 3 Hard
Blooms: Understand
[QUESTION]
13. A statutory merger is a(n)
A) Business combination in which only one of the two companies continues to exist as a legal
corporation.
B) Business combination in which both companies continue to exist.
C) Acquisition of a competitor.
D) Acquisition of a supplier or a customer.
E) Legal proposal to acquire outstanding shares of the target's stock.
Answer: A

Page 2-6
Blooms: Remember
[QUESTION]
14. In a business combination where a subsidiary retains its incorporation and which is accounted
for under the acquisition method, how should stock issuance costs and direct combination costs
be treated?
A) Stock issuance costs and direct combination costs are expensed as incurred.
B) Direct combination costs are ignored, and the stock issuance costs result in a reduction to
additional paid-in capital.
C) Direct combination costs are expensed as incurred and stock issuance costs result in a
reduction to additional paid-in capital.
D) Both are treated as part of the acquisition consideration transferred.
E) Both reduce additional paid-in capital.
Answer: C
Blooms: Remember
REFERENCE: 02-01
Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The
book value and fair value of Vicker's accounts on that date (prior to creating the combination) are
as follows, along with the book value of Bullen's accounts:
Bullen Vicker Vicker

Book Book Fair
Value Value Value
Retained earnings, 1/1/20 $250,000 $240,000
Cash and receivables 170,000 70,000 $70,000
Inventory 230,000 170,000 210,000
Land 280,000 220,000 240,000
Buildings (net) 480,000 240,000 270,000
Equipment (net) 120,000 90,000 90,000
Liabilities 650,000 430,000 420,000
Common stock 360,000 80,000
Additional paid-in capital 20,000 40,000
[QUESTION]
REFER TO: 02-01

Page 2-6
15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair
value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much
goodwill should be recognized?
A) $144,000.
B) $104,000.
C) $ 64,000.
D) $ 60,000.
E) $ 0.
Answer: B
Topic: Acquisition―Calculate consideration transferred
Blooms: Apply
AACSB: Knowledge Application
Feedback: Goodwill = Consideration Transferred less Acquisition Date Fair Value of Net Assets
Acquired and Liabilities Assumed
Consideration Transferred: $47 × 12,000 = $564,000
Fair Value of Assets Acquired: 70,000 (cash and receivables) + 210,000 (inventory) + 240,000
(land) + 270,000 (buildings) + 90,000 (equipment) = $880,000
Fair Value of Liabilities Assumed: $420,000
Consideration Less Net Assets/Liabilities = $880,000 - $420,000 = $460,000
Goodwill: $564,000 - $460,000 = $104,000
[QUESTION]
REFER TO: 02-01
16. Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair
value for all of the outstanding stock of Vicker. What is the consolidated balance for Land as a
result of this acquisition transaction?
A) $460,000.
B) $510,000.
C) $500,000.
D) $520,000.
E) $490,000.
Answer: D
Topic: Acquisition―Allocate fair value
Topic: Acquisition―Calculate consolidated balances
Blooms: Apply
Feedback: $280,000 (Bullen Land) + $240,000 (Vicker Land) = $520,000
[QUESTION]
REFER TO: 02-01

Page 2-7
17. Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair
value for all of the outstanding shares of Vicker. What will be the consolidated Additional Paid-
In Capital and Retained Earnings (January 1, 2018 balances) as a result of this acquisition
transaction?
A) $60,000 and $490,000.
B) $60,000 and $250,000.
C) $380,000 and $250,000.
D) $524,000 and $250,000.
E) $524,000 and $420,000.
Answer: D
Difficulty: 3 Hard
Blooms: Apply
Feedback: Consolidated Additional Paid-In Capital = Bullen APIC ($20,000) + APIC related to
stock issued in connection with Vicker business combination ($42 × 12,000) = $20,000 +
$504,000 = $524,000
Bullen’s Retained Earnings: $250,000
[QUESTION]
REFER TO: 02-01
18. Assume that Bullen issued preferred stock with a par value of $240,000 and a fair value of
$500,000 for all of the outstanding shares of Vicker in an acquisition business combination. What
will be the balance in the consolidated Inventory and Land accounts?
A) $440,000, $496,000.
B) $440,000, $520,000.
C) $425,000, $505,000.
D) $400,000, $500,000.
E) $427,000, $510,000.
Answer: B
Blooms: Apply
Feedback: Inventory $230,000 BV + $210,000 FV = $440,000
Land $280,000 BV + $240,000 FV = $520,000
[QUESTION]
REFER TO: 02-01

Page 2-8
19. Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In
addition, Bullen paid $35,000 for secretarial and management time allocated to the acquisition
transaction. What will be the balance in consolidated goodwill?
A) $ 0.
B) $20,000.
C) $35,000.
D) $55,000.
E) $65,000.
Answer: B
Blooms: Apply
Feedback: Fair value of consideration transferred less fair value of net assets = goodwill
$480,000 – (70,000+210,000+240,000+270,000+90,000-420,000) = $20,000 Excess
REFERENCE: 02-02
Prior to being united in a business combination, Botkins Inc. and Volkerson Corp. had the
following stockholders' equity figures:
Botkins Volkerson
Common stock ($1 par value) $ 220,000 $ 54,000
Additional paid-in capital 110,000 25,000
Retained earnings 360,000 130,000
Botkins issued 56,000 new shares of its common stock valued at $3.25 per share for all of the
outstanding stock of Volkerson.
[QUESTION]
REFER TO: 02-02
20. Assume that Botkins acquired Volkerson on January 1, 2017 and that Volkerson maintains a
separate corporate existence. At what amount did Botkins record the investment in Volkerson?
A) $ 56,000.
B) $182,000.
C) $209,000.
D) $261,000.
E) $312,000.
Answer: B
Difficulty: 1 Easy
Blooms: Apply
Feedback: $3.25 × 56,000 = $182,000

Page 2-9
[QUESTION]
REFER TO: 02-02
21. Assume that Botkins acquired Volkerson on January 1, 2017. Immediately afterwards, what
is the value of the consolidated Common Stock?
A) $456,000.
B) $402,000.
C) $274,000.
D) $276,000.
E) $330,000.
Answer: D
Blooms: Apply
Feedback: $220,000 + ($1.00 × 56,000) = $276,000
[QUESTION]
22. Chapel Hill Company had common stock of $350,000 and retained earnings of $490,000.
Blue Town Inc. had common stock of $700,000 and retained earnings of $980,000. On January
1, 2018, Blue Town issued 34,000 shares of common stock with a $12 par value and a $35 fair
value for all of Chapel Hill Company's outstanding common stock. This combination was
accounted for using the acquisition method. Immediately after the combination, what was the
amount of total consolidated net assets?
A) $2,520,000.
B) $1,190,000.
C) $1,680,000.
D) $2,870,000.
E) $2,030,000.
Answer: D
Blooms: Apply
Feedback: Consideration Transferred = Net Fair Value of Assets Acquired and Liabilities
Assumed
Consideration Transferred: $35 per share × 34,000 shares = $1,190,000
Net Fair Value of Assets/Liabilities: $700,000 + $980,000 = $1,680,000
Total: $1,190,000 + $1,680,000 = $2,870,000

Page 2-10
[QUESTION]
23. Which of the following is a not a reason for a business combination to take place?
A) Cost savings through elimination of duplicate facilities.
B) Quick entry for new and existing products into domestic and foreign markets.
C) Diversification of business risk.
D) Vertical integration.
E) Increase in stock price of the acquired company.
Answer: E
Topic: Business combination―Reasons to combine
Difficulty: 1 Easy
Blooms: Remember
[QUESTION]
24. Which of the following statements is true regarding a statutory merger?
A) The original companies dissolve while remaining as separate divisions of a newly created
company.
B) Both companies remain in existence as legal corporations with one corporation now a
subsidiary of the acquiring company.
C) The acquired company dissolves as a separate corporation and becomes a division of the
acquiring company.
D) The acquiring company acquires the stock of the acquired company as an investment.
E) A statutory merger is no longer a legal option.
Answer: C
Blooms: Remember
[QUESTION]
25. Which of the following statements is true regarding a statutory consolidation?
A) The original companies dissolve while remaining as separate divisions of a newly created
company.
B) Both companies remain in existence as legal corporations with one corporation now a
subsidiary of the acquiring company.
C) The acquired company dissolves as a separate corporation and becomes a division of the
acquiring company.
D) The acquiring company acquires the stock of the acquired company as an investment.
E) A statutory consolidation is no longer a legal option.
Answer: A
Blooms: Remember

Page 2-11
[QUESTION]
26. In a transaction accounted for using the acquisition method where consideration transferred
exceeds book value of the acquired company, which statement is true for the acquiring company
with regard to its investment?
A) Net assets of the acquired company are revalued to their fair values and any excess of
consideration transferred over fair value of net assets acquired is allocated to goodwill.
B) Net assets of the acquired company are maintained at book value and any excess of
consideration transferred over book value of net assets acquired is allocated to goodwill.
C) Acquired assets are revalued to their fair values. Acquired liabilities are maintained at book
values. Any excess is allocated to goodwill.
D) Acquired long-term assets are revalued to their fair values. Any excess is allocated to
goodwill.
Answer: A
Blooms: Analyze
AACSB: Analytical Thinking
[QUESTION]
27. In a transaction accounted for using the acquisition method where consideration transferred is
less than fair value of net assets acquired, which statement is true?
A) Negative goodwill is recorded.
B) A deferred credit is recorded.
C) A gain on bargain purchase is recorded.
D) Long-term assets of the acquired company are reduced in proportion to their fair values. Any
excess is recorded as a deferred credit.
E) Long-term assets and liabilities of the acquired company are reduced in proportion to their fair
values. Any excess is recorded as gain.
Answer: C
Difficulty: 1 Easy
Blooms: Analyze
AACSB: Analytical Thinking
[QUESTION]
28. Which of the following statements is true regarding the acquisition method of accounting for
a business combination?

Page 2-12
A) Net assets of the acquired company are reported at their fair values.
B) Net assets of the acquired company are reported at their book values.
C) Any goodwill associated with the acquisition is reported as a development cost.
D) The acquisition can only be effected by a mutual exchange of voting common stock.
E) Indirect costs of the combination reduce additional paid-in capital.
Answer: A
Blooms: Remember
[QUESTION]
29. Which of the following statements is true?
A) The pooling of interests for business combinations is an alternative to the acquisition method.
B) The purchase method for business combinations is an alternative to the acquisition method.
C) Neither the purchase method nor the pooling of interests method is allowed for new business
combinations.
D) Any previous business combination originally accounted for under purchase or pooling of
interests accounting method will now be accounted for under the acquisition method of
accounting for business combinations.
E) Companies previously using the purchase or pooling of interests accounting method must
report a change in accounting principle when consolidating those subsidiaries with new
acquisition combinations.
Answer: C
Blooms: Remember
REFERENCE: 02-03
The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31,
2018, prior to the business combination whereby Goodwin acquired Corr, are as follows (in
thousands):

Page 2-13
Goodwin Corr
Revenues $2,700 $600
Expenses 1,980 400
Net income $ 720 $200
Retained earnings 1/1 $2,400 $400

Net income 720 200
Dividends (270) (0)
Retained earnings, 12/31 $2,850 $600
Cash $ 240 $ 220

Receivables and inventory 1,200 340
Buildings (net) 2,700 600
Equipment (net) 2,100 1,200
Total assets $6,240 $2,360
Liabilities $1,500 $ 820

Common stock 1,080 400
Additional paid-in capital 810 540
Retained earnings 2,850 600
Total liabilities & stockholders’ equity $6,240 $2,360
On December 31, 2018, Goodwin obtained a loan for $600 and used the proceeds, along with the
transfer of 30 shares of its $10 par value common stock, in exchange for all of Corr’s common
stock. At the time of the transaction, Goodwin’s common stock had a fair value of $40 per share.
In connection with the business combination, Goodwin paid $25 to a broker for arranging the
transaction and $35 in stock issuance costs. At the time of the transaction, Corr's equipment was
actually worth $1,400 but its buildings were only valued at $560.
[QUESTION]
REFER TO: 02-03
30. Assuming that Corr retains a separate corporate existence after this acquisition, at what
amount is the investment recorded on Goodwin's books?
A) $1,540.
B) $1,800.
C) $1,860.
D) $1,825.
E) $1,625.
Answer: B
Blooms: Apply

Page 2-14
Feedback: $600 Cash + ($40 per share × 30 shares) = $1,800 Investment
[QUESTION]
REFER TO: 02-03
31. In this acquisition business combination, what total amount of common stock and additional
paid-in capital should Goodwin recognize on its consolidated financial statements?
A) $ 265.
B) $1,165.
C) $1,200.
D) $1,235.
E) $1,765.
Answer: B
Blooms: Apply
Feedback: Total for Common Stock equals par value of stock; with respect to stock issued, APIC
is adjusted by the amount fair value exceeds par value + stock issuance costs.
Common Stock: $10 par value per share x 30 shares = $300
APIC: Excess Value of Stock Over Par = $30 x 30 shares = $900
APIC: Stock Issuance Costs = $35
Total APIC = $300 + $900 - $35 = $1,165
[QUESTION]
REFER TO: 02-03
32. Compute the consolidated revenues for 2018.
A) $2,700.
B) $ 720.
C) $ 920.
D) $3,300.
E) $1,540.
Answer: A
Difficulty: 1 Easy
Blooms: Apply
Feedback: $2,700 Parent’s Revenue Only
[QUESTION]

Page 2-15
REFER TO: 02-03
33. Compute the consolidated receivables and inventory for 2018.
A) $1,200.
B) $1,515.
C) $1,540.
D) $1,800.
E) $2,140.
Answer: C
Difficulty: 1 Easy
Blooms: Apply
Feedback: $1,200 + $340 = $1,540
[QUESTION]
REFER TO: 02-03
34. Compute the consolidated expenses for 2018.
A) $1,980.
B) $2,005.
C) $2,040.
D) $2,380.
E) $2,405.
Answer: B
Blooms: Apply
Feedback: Consolidated Expenses = Goodwin’s Expenses + Corr’s Expenses immediately
following the transaction
Goodwin’s Expenses = $1,980 (2018 Expenses Reported on Financial Statements) + $25 (Fees
Expensed as Incurred) = $2,005
[QUESTION]
REFER TO: 02-03
35. Compute the consolidated cash account at December 31, 2018.
A) $460.
B) $425.
C) $400.
D) $435.

Page 2-16
E) $240.
Answer: C
Blooms: Apply
Feedback: Consolidated Cash Equals Goodwin’s Cash + Corr’s Cash – Cash to Pay Costs and
Expenses Related to Business Combination
Goodwin’s Cash: $240
Corr’s Cash: $220
Costs and Expenses: $25 + $35 = $60
Consolidated Total = $240 + $220 = $460 – ($25 + $35) = $400
[QUESTION]
REFER TO: 02-03
36. Compute the consolidated buildings (net) account at December 31, 2018.
A) $2,700.
B) $3,370.
C) $3,300.
D) $3,260.
E) $3,340.
Answer: D
Blooms: Apply
Feedback: Consolidated Value of Buildings Determined by adding the book value of Goodwin’s
buildings ($2,700) to the Fair Value of Corr’s buildings ($560 FV) = $3,260
[QUESTION]
REFER TO: 02-03
37. Compute the consolidated equipment (net) account at December 31, 2018.
A) $2,100.
B) $3,500.
C) $3,300.
D) $3,000.
E) $3,200.

Page 2-17
Answer: B
Topic: Acquisition method―Allocate fair value
Blooms: Apply
Feedback: Consolidated Value of Equipment (net) Determined by adding the book value of
Goodwin’s Equipment Account ($2,100) to the Fair Value of Corr’s Equipment (net) ($1,400) for
a total consolidated fair value of $3,500
[QUESTION]
REFER TO: 02-03
38. Compute the consideration transferred for this acquisition at December 31, 2018.
A) $ 900.
B) $1,165.
C) $1,200.
D) $1,765.
E) $1,800.
Answer: E
Blooms: Apply
Feedback: Consideration transferred equals fair value of cash ($600) + fair value of Goodwin
stock issued ($40 per share × 30 shares) = $600 + $1,200 = $1,800
[QUESTION]
REFER TO: 02-03
39. Compute the goodwill arising from this acquisition at December 31, 2018.
A) $ 0.
B) $100.
C) $125.
D) $160.
E) $ 45.
Answer: B
Blooms: Apply

Page 2-18
Feedback: Goodwill equals excess of: (i) fair value of assets received and liabilities assumed; less
(ii) consideration paid.
Fair value of assets received: $220 cash + $340 receivables and inventory + $560 fair value of
buildings (net) + $1,400 fair value of equipment (net) = $2,520
Fair value of liabilities assumed: $820
Consideration paid: $600 cash + FV of common stock ($40 × 30 = $1,200) = $1,800
Goodwill = Consideration Paid ($1,800) less Fair Value of assets received and liabilities assumed
($2,520 assets received - $820 liabilities assumed = $1,700) = $1,800 - $1,700 = $100
[QUESTION]
REFER TO: 02-03
40. Compute the consolidated common stock account at December 31, 2018.
A) $1,080.
B) $1,480.
C) $1,380.
D) $2,280.
E) $2,680.
Answer: C
Blooms: Apply
Feedback: Goodwin Stock (par value $1,080) + Stock Issued for Corr (par value $10 × 30 shares)
= $1,080 + $300 = $1,380
[QUESTION]
REFER TO: 02-03
41. Compute the consolidated additional paid-in capital at December 31, 2018.
A) $ 810.
B) $1,350.
C) $1,675.
D) $1,910.
E) $1,875.
Answer: C
Difficulty: 3 Hard
Blooms: Apply

Page 2-19
Feedback: Goodwin’s APIC total ($810) + Corr’s APIC total
Corr’s APIC total: Excess of FV of shares issued on combination to Corr over par value, ($40 -
$10) × 30 shares = $30 × 30 shares = $900) less Stock Issuance Costs ($35) = $900 - $35 = $865
Consolidated APIC = $810 (Goodwin) + $865 (Corr) = $1,675
[QUESTION]
REFER TO: 02-03
42. Compute the consolidated liabilities at December 31, 2018.
A) $1,500.
B) $2,100.
C) $2,320.
D) $2,920.
E) $2,885.
Answer: D
Blooms: Apply
Feedback: Goodwin’s liabilities plus Corr’s liabilities equal consolidated liabilities
Goodwin’s Liabilities: $1,500 Existing + $600 to fund consideration paid on business
consolidation = $2,100
Corr’s Liabilities: $820
Consolidated Liabilities = $2,100 (Goodwin) + $820 (Corr) = $2,920
[QUESTION]
REFER TO: 02-03
43. Compute the consolidated retained earnings at December 31, 2018.
A) $2,800.
B) $2,825.
C) $2,850.
D) $3,425.
E) $3,450.
Answer: B
Blooms: Apply
Feedback: $2,850 - $25 Broker Expense = $2,825
REFERENCE: 02-04

Page 2-20
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eye was immense, and growing more so. Bathing only seemed to
help it along.
He began to dress. Late as the hour was, he was determined to get
his car and slink out of town, rather than display his facial
adornments to Carsonville’s admiring gaze. He realized just how
admiring that gaze would be.
Suddenly he paused, at the sound of some one entering the house.
He started, then recognized his father’s step ascending the stairs.
This was strange, for when Colonel Carson had left for Fardale he
had expected to remain over Monday. A moment later the colonel
opened the door of his son’s room and stepped in.
“Still up, eh?” he said. Then his eyes took in the array of bottles, and
he sniffed. “Arnica?”
“Arnica,” repeated Bully sullenly, keeping his back to the light.
“What have you been doing?”
“I been sittin’ on the roof eating scrambled eggs—what’d you
suppose?”
Being used to Bully’s disrespectful manner, Colonel Carson took no
notice.
“When I left, you agreed that you would get Merriwell laid out,” he
said. “Did you succeed?”
“If I had, I wouldn’t be packin’ up,” returned Bully. He moved around
until the light struck his face. “See that peeper? Well, I’m goin’ to
take that car o’ mine and beat it. I’ll be back in a few days.”
“Hold on, son, hold on,” but Colonel Carson could not help smiling,
angry though he was. “Do you mean to say that kid licked you?”
“Don’t look that way, does it? He had about a dozen fellers hid in a
doorway, and they jumped us with clubs. We couldn’t do nothin’.”
Bully reeled off this astonishing lie with assurance. His father
examined the black eye with commiseration and rage.
“My poor boy! We’ll make that fellow rue the day he ever came to
Carsonville, son! So you were going away, eh?”
“Yes. I reckon I’ll lay over in Orton fer a few days.”
Orton was a small town fifteen miles from Carsonville, a mere
country village, where it would be easy to remain and pass over the
injury with any excuse. Colonel Carson nodded thoughtfully.
“That’s not so bad, son. I dunno’s it won’t fit in pretty well, too.”
Bully looked up suddenly.
“Thought you was goin’ to stay over in Fardale? You must ’a’ done
some tall hustling to get back on that late train! Did you see
Randall?”
“Yes,” and Colonel Carson’s hard face darkened suddenly. “He’s no
good the way we thought, Bully. He won’t throw the game.”
“Huh? Why not?”
“I didn’t get down to reasons—didn’t have to. He’s one o’ these here
goody-goody fellows who believe in sport for sport’s sake, prob’ly.
Anyway, he shied when I mentioned it, so I changed my plans
around a bit.”
“You’re a wonder!” and Bully chuckled suddenly, in unholy
admiration. “You got the slickest brain I ever did see! What’s the
idea now?”
“Well,” and Colonel Carson sank wearily into a chair, “you know that
I want to get down some bets on this Fardale-Franklin game, Bully.
The only thing is how to know which team will win, d’you see?”
“Sure—even with this eye,” said Bully, with a grin. “Go on.”
“The Franklin pitcher is a wonder, but they don’t know it at Fardale.
Randall thinks he can win easily, if he pitches. And he’ll pitch if
Merriwell doesn’t show up, that’s certain. So if Randall pitches, it’s a
dead sure thing that Franklin wins the game.”
“And if Merriwell pitches——”
“Then it’s not so sure. But listen here, Bully! Randall put me wise to
something, something that made me alter my plans. We want to get
back at Merriwell, at both of ’em, father and son. The father will get
hit if Fardale loses, and the kid gets hit if he don’t pitch.”
“How so?”
“’Cause whoever pitches that game gets ’lected captain o’ the
Fardale team. I don’t understand it all, but that’s how she lays. If
Randall pitches, Merriwell loses out all around, d’you see?”
“And if he pitched, then he’d get the ’lection?”
“That’s it, Bully.”
The son grimaced, as he knotted a yellow-purple necktie about his
neck.
“Then he can pitch, fer all o’ me. By thunder, I know when I got
enough, pop. If you can figger out any way——”
“Hold on, son, hold on!” and Colonel Carson tugged at his goatee,
smiling craftily. “You ain’t never seen the old man lose out very long,
have you? He ain’t a-goin’ to this time, either. Merriwell ain’t goin’ to
pitch that game, see?”
“How you goin’ to keep him out?”
“That depends. Where is he now?”
“Gettin’ the constable to arrest me, mebbe,” returned Bully easily. “I
lost my hat, and he slung it away after seein’ whose it was. Ironton
is watchin’ to see where he goes fer the night.”
“Well, we can take care of him easily enough,” announced Colonel
Carson, with great complacence. “Your goin’ to Orton will come in
jest right, too.”
“Me? Not on your life!” exclaimed Bully fervently. “You don’t get me
mixed in no more doings with that kid, Merriwell, pop. Not much!
I’m done.”
“Oh, no you’re not!” said the other easily. “I’ll get over to Fardale for
that game, and I’ll get a good bunch o’ money down on Franklin.
That cussed fool Merriwell done me out o’ the McQuade mortgage,
and I’m goin’ to make him and his kid sweat for it, you bet!”
“I guess he wasn’t so much of a fool if he did you out o’ anything,”
muttered Bully, under his breath.
“Yep, it’s a good scheme, a mighty good scheme,” mused his father
reflectively. “I’ll give you a rake-off on them bets, Bully. Ain’t the kid
got an uncle named Dick Merriwell?”
“Sure. What’s the idea?”
Bully began to take a keener interest in the subject. He knew that
the wily Colonel Carson was rarely bested at such an encounter as
this, and hope sprang anew that his father could succeed where he
himself had failed.
“You wait, son. I ain’t got the precise details figgered out, but
they’re a-comin’. Yes, they’re on the way, all right.”
Colonel Carson fell to tugging thoughtfully at his goatee. An instant
later there came a soft whistle below the windows.
“There’s Ironton now,” exclaimed Bully.
He crossed to the nearest window, and flung up the sash.
“That you, Bully?” came the voice of Ironton.
“Sure, it’s me. What’d you find out?”
There was a trace of anxiety in his tones. He still half feared that
Merriwell would arrest him for that night’s work.
“It’s all right, Bully. I heard ’em talking. They ain’t goin’ to do nothin’
about it, but figure on goin’ home to-morrow.”
“Ask where Merriwell is,” spoke up Colonel Carson hastily. Bully
repeated the question.
“He and the red-headed guy went up to the Morton House,”
answered Ironton. “How’s the eye?”
“Black,” said Bully, with a curse. “I’m goin’ to skip out o’ town fer a
few days. Much obliged, Ironton. See you later.”
He closed the window. Colonel Carson had risen, and was reflectively
fingering a telegraph blank he had extracted from his pocket.
“I’m glad to get that information, Bully. I guess I can fix Mr. Chip
Merriwell without much trouble!”
“I’d like to know how,” growled Bully.
“You will, as soon as you get your car out. I want you to do an
errand over at Orton, and I guess there won’t be any chance to go
wrong this time. Get ready, and when the car’s out come to my
room.”
And Colonel Carson made his exit, whistling softly to himself.
CHAPTER XX.
LURED AWAY.
“No use—I can’t sleep a morning like this!”

Chip Merriwell jumped out of bed and went to the window. It was
early Sunday morning, and from the room at the hotel which he and
Clancy occupied he had a clear view of the village green, the streets
leading on down toward the river, and the green opposite slope of
the valley beyond.
The air was heavy with apple blossoms, warm with spring richness,
and Frank drank it in eagerly. From somewhere about the place he
heard the pur of a motor car, but could see nothing of the machine.
“I don’t believe I can stay indoors,” he sighed softly, and turned to
where his clothes lay on a chair.
Indeed, the morning was a perfect one. The little town lay still,
deserted, apparently empty of all life. Yet its streets were clothed
with freshness, and its feathery-leaved trees were green with new
spring life. From the fruit orchards that hedged Carsonville there
drifted renewed sweetness on every breeze.
Chip glanced at his chum, but Clancy was sleeping the sleep of the
just. The red-haired chap put in his daytime most energetically, and
when he slept he did it with just as much vigor.
“I’ll let him pound his ear,” smiled Chip, as he flung on his clothes,
impatient to be outdoors. “Anyway, I’d just as soon have a walk all
by myself for a change. I’ve a good notion to go down and take a
dip in the mill pond, by gracious!”
At thought of the cool, inviting waters of the river, which he had
explored with the aid of Billy Mac, he finished his dressing hurriedly.
The hotel was still dead to the world, and Frank quietly let himself
out into the silent corridor.
Downstairs, however, he found the clerk sweeping out the office.
The clerk looked up with a cheery greeting and a wide grin, for Chip
was already a popular hero in Carsonville, after the game of the day
before.
“Up early, ain’t you?”
“Too fine a morning to sleep,” said Chip. “What’s that machine I
heard buzzing around?”
“The garage is down the street a ways,” explained the clerk, leaning
on his broom. “They’ve got one machine there for hire. Want to get
it?”
“No, thanks,” and Frank laughed. “I was only mildly curious. Clancy’s
car is all right?”
“Sure, I seen it out in the back yard only just now.”
Merry nodded and passed on to the veranda. At sight of the
upturned chairs he was attacked by sudden laziness, and with a
yawn turned over one of the chairs and seated himself, drinking in
the clear air greedily.
“Mornings like this make life worth living,” he reflected contentedly.
“I’ll wager that if folks knew how good these early spring mornings
were, they’d go to bed earlier and get up earlier. It’s worth all the
rest of the day!”
He sprawled out comfortably. He was still weary with his stiff game
of the previous afternoon, and his long evening following, and soon
realized that if he sat here very long he would be fast asleep once
more. So, after five minutes, he forced himself to rise.
“I never thought I’d be getting lazy!” he murmured. “Well, down to
the river and have a quick dip, then a rest on the long grass, and
back to rout Clan out in time for breakfast.”
He paused as he reached the steps, for he caught sight of a solitary
figure that seemed to be approaching the Morton House.
The figure was that of a farmer, but this signified nothing in
Carsonville, where every one owned farms or orchards, or else
worked in them. The man was tall, round-shouldered, and his face
was decorated with a yellowish wisp of beard. He seemed to be a
powerful fellow, Chip thought.
As he approached the hotel, Merry caught sight of the man’s face. It
was not exactly a pleasant one, for the eyes were very close set, and
there was a general look of shrewd cunning about the man which
was not reassuring.
Frank would not have noticed him, had the man not been inspecting
him rather closely as he drew near. It occurred to Merry that the
fellow might be looking for him.
“Good morning!” he exclaimed. “This is certainly great spring
weather, eh?”
“Purty good,” and the man looked him over curiously. “Say, mister,
mebbe you kin tell me if there’s a feller at the hotel by the name o’
Merriwell? Frank Merriwell, I guess the front part of it is.”
Merry wondered. Without any undue self-glorification, he thought it
odd that the man did not know him, for every soul in town had
witnessed the game of the previous day. He himself had come in for
a good deal of attention.
“I believe he’s stopping here,” he said. “In fact, you happen to be
talking to him at this moment. Why?”
“Well, now!” The man stared up. “Are you him?”
“I’m it,” laughed Frank. “Anything I can do for you?”
“Why, I was down to the railroad dee-po jest now, when a tellygram
come in fer a feller o’ that name. The agent, he couldn’t come up
very well, so I said I’d fetch it along and see if you was here.”
While he spoke, the man began fishing in the pocket of his overalls,
and at last pulled out a yellow envelope. Merry took it with a nod.
He knew that there was no regular telegraph office in the little town,
messages being handled from the railroad station, so he thought
little of the matter.
“Well, I’m much obliged to you for your trouble,” he said, taking out
a quarter as the man handed him the message. “If you’ll take——”
“No, thanks, mister,” and the man turned away without taking the
money. “I couldn’t take nothin’, thanks. So long.”
“So long,” said Frank.
He tore open the message, as the man slouched away down the
street. It was a typewritten message, and had evidently been
received at Carsonville some ten minutes previously.
“By gracious!” he said. “What the deuce has struck Uncle Dick,
anyhow? And where or what is Orton?”
This was the message that caused him so much wonder:
Frank Merriwell, Junior, Carsonville: Have your father meet
me not later than nine, Sunday morning, Orton. Very
important. Keep destination secret.
Uncle Dick.
Merry stared down at it, frowning. There must be a place named
Orton, though he knew of none in the vicinity. But what was Dick
Merriwell doing there?
He turned at a step, to find the clerk sweeping out the refuse
through the doorway of the hotel. Chip knew that he would be able
to get information at once, and spoke.
“Where is Orton? Is that any place near here?”
“Orton? Sure, Mr. Merriwell!” The clerk jerked his thumb over across
the valley. “It ain’t what you might call a metropolis, nohow, but it’s
got a smithy and a couple o’ stores and a schoolhouse. Thinkin’ o’
goin’ over there?”
Frank started. Going over there! Why, of course!
“How far is it from here?” he queried.
“About fifteen mile by road, I take it. ’Bout ten, as the crow flies.”
While the clerk paused to stare at him curiously, Merry considered. If
his uncle was at Orton, he must be expecting his father to meet him
there. But Frank Merriwell, senior, had returned home on the late
train! And Dick had stated that it was very important, so there was
but one thing to do.
“Clan hasn’t waked up yet,” thought Chip, “so I guess I won’t disturb
him. I’ll go down and see if I can get that garage machine, and if it’s
taken then I can rouse up Clancy and get the Hornet buzzing.”
He turned to the clerk, with quick decision, shoving the telegram
into his pocket.
“Yes, I just received a telegram——” he stopped, remembering the
admonition in that telegram. “But, by the way, I’d rather you
wouldn’t say anything to any one about my going to Orton, will
you?”
“Sure not,” assented the clerk at once.
“Tell Clancy that I’ll be back before noon,” went on Merry, turning.
“I’ll get a car if I can, and be back by then, easily. Much obliged to
you!”
“You got a good morning for the trip,” called the clerk after him.
“Good luck!”
Chip waved his hand in return, and walked down the street toward
the garage. He glanced about for the messenger, but doubtless the
man had returned to the station, and he sighed.
“I see where I don’t get that early swim this morning! Well, that’s
what comes of a fellow having a family!”
And with a whimsical grimace he saw the garage ahead of him. In
front was an old-fashioned but comfortable-looking car, with a young
fellow busily engaged in washing it off.
“Must be expecting Sunday traffic,” thought Frank. “That looks a
whole lot better than Clan’s bumpy old scrap heap, just the same.
Six-cylinder, too, so probably she can go some.”
Approaching the washer, he inquired if the car was for rent. The
young fellow hailed the proprietor of the garage, inside, and the
latter came out and nodded to Chip at once.
“You’re young Merriwell, ain’t you? I seen that game yesterday, by
thunder! Is it you who wants to get a car?”
“I want to go over to Orton and back,” said Merry, “if your car’s for
rent.”
“For rent? To you?” A wide grin came over the man’s face. “Say,
Merriwell, you couldn’t rent no car off’n me, not if you was to offer
me a cold million dollars!”
“Eh!” Merry looked at him in astonishment. “What do you mean?”
“Anybody that lays over Colonel Carson like you did yesterday, son,
can have my car when he wants it, see? No, don’t do any hollering. I
won’t take no pay, except for gas and the chauffeur. Just expenses.
You’ll have to get back by noon, though. I only got the one car, and
it’s engaged for the afternoon.”
Finding that the man was absolutely earnest in his refusal to take
money, Chip assented.
“We’ll be back as soon as we can reach Orton and turn around,” he
said, getting into the car. “And I’m much obliged to you, sir!”
“Pleasure’s all mine, son,” returned the other, with a grand air.
CHAPTER XXI.
WHERE IS MERRY?
“Great morning, Chip!”

Clancy was drowsily looking out of the window. His eyes had just
opened, and he had not yet observed the absence of his chum.
“Wake up and take a look at things, you lazy——”
Clan turned over to give Merry a punch, then suddenly sat up.
“Well, by Jupiter!” he gasped.
He noticed for the first time that his chum’s clothes had disappeared,
as well as Chip himself. Then he turned toward the window, hearing
a church bell ringing sweetly across the valley, and noticed the
maturity of the morning.
“Jumping whippoorwills! I must have overslept a whole lot——”
At that moment there came a sudden, furious knocking on the door.
Clancy paused, half out of bed, and poised a pillow to fling as the
door opened.
“Come in!” he yelled. “I’m not deaf. Come in, you imitation of a real
man! You don’t fool me, Chip Merriwell——Wow! Get out o’ here!”
Clancy had thought that it was his chum, but as the door opened
wide his voice shot up to a shrill yell. For there, looking in with
rolling eyes, was one of the two negresses who acted as waitresses
and bell boys at the hotel.
“Get out o’ here!” shrilled Clan, pulling the bedclothes around him.
“Can’t you hear? Shut that door! What d’you think I am, a moving-
picture show?”
The door shut. From the outside came the voice of the startled
negress:
“Ah thought yo’ said to come in, suh. Ah suttinly did!”
“I was wrong,” retorted Clancy, grinning in spite of himself. “I meant
to say go climb up the flagpole and kill flies. What do you want?”
“Why, suh, dar’s a gem’man downsta’rs askin’ foh yo’ an Mistuh
Merriwell.”
“What’s his name, and what time is it?”
“It’s dat ar McQuade boy. It’s ten o’clock, suh.”
“Send him up,” and Clancy leaped for his clothes. “Great Scott! Ten
o’clock! Say, there must be something in this Carsonville air! I
haven’t slept as late as this for a month of Sundays.”
He tore open his suit case, and went into dressing with such furious
energy that the room was filled with baseball uniforms and sections
of underwear and clean shirts when Billy flung open the door.
“What’s goin’ on here?” demanded the astonished Billy Mac.
“Me, mostly,” said Clancy. “Where’s Chip?”
“How do I know? Say, are you just getting up?”
“No!” roared Clancy, half into a clean shirt. “I’m sitting on Brooklyn
Bridge making mince pie, you bonehead!”
“Oh, don’t let me disturb you,” said Billy sarcastically. “If you haven’t
got your beauty sleep, old sorrel top, go right back to bed. It’s only
ten o’clock, and I thought maybe you’d like to take a sunrise swim
down in the mill pond.”
Clancy cut these remarks short by seizing a pillow and letting fly.
Billy was sent back into the corner, and came up grinning.
“Where’s Chip?”
“Look under the bed,” retorted Clancy. “I just woke up. I suppose
he’s dug out for the river himself. There’s no sign of a bathroom
around this jay hotel.”
“What d’you expect for three dollars a week? There, leave off that
white shirt, Clan! We’ll go down to the crick and meet Chip, then
come back here and dress.”
This program suited Clancy to perfection. On their way down to the
street, however, he stopped and asked the clerk whether Chip had
left any message for him.
“Sure, Mr. Clancy. Said he’d be back before noon.”
“Huh? And when was that?”
“A little before seven this morning.”
“Holy smoke!” cried Clancy. “Before seven! Then Merry’s been gone
for three hours, Billy! He isn’t down at the river, you boob!”
“Quit calling names,” retorted Billy, a trace of anxiety in his clear
eyes. “It didn’t improve your manners to go West, I reckon. Sure,
we’ll go down and see, anyhow. He might be asleep in the sun down
there.”
Clancy asked the clerk if he knew where Merry had gone. The clerk,
mindful of Chip’s injunction, said that he “couldn’t say,” and the two
friends went off toward the river in helpless wonderment.
Billy said nothing, but he was not a little worried. Clancy suspected
nothing wrong, though he knew that it was not Chip’s usual custom
to disappear without leaving any word of where he had gone.
Upon reaching the mill pond they found no sign of Merry. Clancy
scoffed at the fears of his friend, so they stripped and took a hasty
dip, then dressed and made their way back to the hotel.
“If he don’t show up pretty soon,” said Billy, “mother will be all
balled up with her chicken dinner, Clan.”
“Well, we aren’t going to wait for him,” said Clancy firmly. “I want
that chicken dinner, believe me! We’ll give him half an hour, then
we’ll load into the Hornet and go up to your house. Maybe he’s there
now.”
Mrs. McQuade had been requested to prepare an early dinner, as the
three friends intended returning to Fardale in the Hornet that
afternoon. So promptly at eleven-thirty Clancy got out his car and
ordered the reluctant Billy to climb in. Since there was a strong
possibility that Merriwell was at the McQuade house, Billy finally
obeyed.
“Nothing could happen to him,” scoffed Clancy, as they climbed the
hill. “He’s off on a walk, that’s all, and probably has gone to sleep on
the shady side of a tree.”
Mrs. McQuade had seen nothing of Merry, and since her dinner was
all ready and waiting, she put aside a generous portion to keep
warm for Chip and insisted on Clancy and Billy pitching in at once.
They did so, but as the meal progressed Clancy began to feel the
same anxiety that was worrying his friend. Finally he asked Mrs.
McQuade to hold her pies in the oven for a little.
“Billy and I will run back to the hotel. He might be there, or on the
way.”
The two jumped into the Hornet, and Clancy hit only the high spots
until they drew up before the hotel. A man came down the steps,
and Clancy recognized him as the garage proprietor.
“Say, Mr. Clancy, where’s Mr. Merriwell?”
“Isn’t he here?”
“No,” returned the man, in a worried voice. “I got that auto rented
this afternoon, and——”
“Auto!” yelled Billy. “Did he rent your auto?”
“Why, sure! Didn’t you know that?”
“Not yet, I didn’t!” snapped Clancy. He wakened abruptly to the fact
that there must be something seriously wrong. “When was this?”
“About seven o’clock.”
“Where did he go to?”
The garage proprietor hesitated.
“Well, last thing he says was not to say anything. But mebbe you
boys could go and see if anything’s wrong. Anyhow, you’re his pals,
so I reckon he wouldn’t mind me tellin’ you so much. He went over
to Orton, or said he was goin’ there.”
“What the deuce was he going to Orton for?” queried Billy, in
astonishment. “Why, there’s nothing there but a schoolhouse and a
smithy!”
Clancy frowned. He looked to see the clerk coming down toward
them in a hesitant way, having heard the conversation.
“There ain’t nothin’ wrong, is there?” inquired the clerk.
“Seems to be,” and Clancy gave him a sharp look. “Didn’t Merry say
he was going to Orton?”
“Oh, you know about it, then?” said the clerk, looking relieved.
“Why, yes, the telegram come from Orton, I think he said——”
“What’s the matter with you?” sang out Billy. “There’s no telegraph
station at Orton, and you know it! Did he tell you that?”
“Well, he got a telegram, then he started askin’ me about Orton,”
returned the clerk. “I didn’t ask no questions, so I don’t know where
it come from. He seemed rather fussed, though.”
“There’s something wrong, Clancy,” murmured Billy, leaning over and
speaking in a low voice. “It isn’t like Chip to go off like that.”
“No,” agreed Clancy, “that’s not his regular trail at all.”
He turned to the garage proprietor.
“Don’t worry about the car, sir. We’ll do a little inquiring around here,
and then start out after it. But whatever loss you incur will be made
good.”
“I wouldn’t give a whoop,” explained the man, “only I’d promised the
car for this afternoon to another party. Far’s I’m concerned, Merriwell
could have the car out all day without payin’ a cent. But I hate to
disappoint folks.”
“Well, we’ll see what can be done,” said Clancy. “How far to this
place?”
“Fifteen miles or less. The roads ain’t none too good, but it ain’t a
long ride at all. The car was in good shape, too.”
“H’m!” grunted Clan. “Mighty funny if it’d take a car five hours for
that! But he might have had a breakdown somewhere. It’d be a
good play to run out and take a look at Orton, Billy.”
“Better look at that telegram first, Clan.”
“Huh? Why?”
“Because we might learn something.”
“Where’s the office here?”
“At the depot. But I’d bet you thirteen thousand dollars and fifty
cents that we’ll find there hasn’t been any message for Chip
received.”
“Say, what’s got into you?” queried Clancy. “Too much chicken pie?”
“Oh, you know same’s I do, only you won’t say it,” sniffed Billy
forebodingly. “It’s foul play, Clan. Merry has helped me, and those
Carsons are getting even with him, that’s what it is!”
“Well, I’m beginning to think so myself, all right,” said Clan soberly.
“Only I didn’t want to scare you out.”
CHAPTER XXII.
INVESTIGATING.
Once more assuring the garage proprietor that any losses he might
incur would be made good, Clancy opened up the Hornet and
started for the railroad station.
“Colonel Carson owns a lot of land over toward Orton,” stated Billy
gloomily. “He’s mixed up in this somewhere, you can believe me!”
Clancy grunted, but made no reply. When they reached the railroad
station they had no difficulty in finding the combination agent and
telegraph operator.
“Morning, Mr. Martin!” sang out Billy. “Did you get a wire for Mr.
Merriwell about seven this morning?”
“Not me, Billy,” returned the agent. “Was he expecting one?”
“Not that we know of, but he got one,” exclaimed Clancy. “Are you
sure that none came in this morning or last night?”
“Nobody here last night, and nothing has come this morning.”
The operator regarded them with curiosity.
“Did you say Merriwell got a telegram, Billy?” he asked.
“No, I said so,” snapped Clancy. “He certainly got a telegram this
morning, and if it didn’t come through you, it’s a mighty queer
thing!”
“Yes, I reckon it is,” returned the agent calmly. This merely
exasperated the red-headed chap.
“Well it’s a darned funny thing,” he exclaimed, “that telegrams can
be received here without the telegraph operator knowing it!”
“Ain’t no message come this morning,” declared the agent again,
and with a nod to Billy, he turned and went back into his place of
business.
For a moment the two friends were at a loss what to do. It was quite
evident that Chip Merriwell had been called away to Orton by some
important affair, yet this agent declared that no message had arrived
for him!
“I guess we’ll go back and grill those fellows over again,” said
Clancy, starting the Hornet. “We want to make sure about this
telegram business.”
“It’s easy enough to send a fake message,” suggested Billy Mac.
“We’ll soon see, then.”
Returning to the hotel, they questioned the clerk anew. By this time
he was in enough anxiety to speak out fully, and stated emphatically
that he had seen the telegram, and that Merriwell had mentioned it.
“I guess that settles it, Clan,” exclaimed Billy, with a gloomy
countenance. “He got a message, all right, but it didn’t come
through the station agent.”
“Do you suppose that Colonel Carson or his son had a hand in it?”
“Sure I do! Only, what’s their reason? Do you think they tried to get
Merry where they could beat him up?”
“From what I saw of the colonel,” said Clancy thoughtfully, “he
wouldn’t go into anything so raw as that, old man. Bully tried it and
got all that was coming to him last night. Granted that Chip was
lured away, there are some folks who would have a decidedly good
reason to keep him out of sight for a day or two.”
“Who?”
“Some of the Franklin Academy crowd. I may be doing him an
injustice, but I’d be more apt to blame Bob Randall than the
Carsons, Billy.”
Billy Mac stared in open disbelief.
“Randall? But why should he try to keep Chip away from Fardale?”
“Because he wants to pitch in Monday’s game against Franklin. It
looks to me as if Randall was trying for the place Ted Crockett will
leave vacant. If he won the Franklin game he’d be a popular hero
——”
“Cut out this foolishness, Clan!”
Billy Mac leaned forward earnestly. He was a staunch friend of
Merriwell’s, but he had seen Bob Randall at his best, and both liked
and admired the fiery, handsome Southerner.
“You’re away off. Bob Randall isn’t that sort, not by a good deal. He
doesn’t like Chip particularly, but it’s an honorable, open-faced
dislike, and it won’t last. If he knew anything like this was going on,
he would be the first one to warn Chip. No, if there’s any one to
blame, Clancy, it’s the Carsons.”
The red-haired chap nodded. He was quick to recognize that his
words might have been an injustice to Randall, whom he did not
know at all well. Moreover, if anything was wrong it was no doubt
inspired by Bully Carson or his father.
“Yes, Billy, I got a bit out of perspective there, I reckon. Randall or
the Franklin crowd wouldn’t be down here. Well, our best plan will
be to hit for Orton and see if Merry’s car got disabled.”
By dint of inquiries they soon found that there was but one road to
Orton, and that if they took it there was no chance that they could
miss Merry. Clancy was for going to call on Colonel Carson and
putting it up to him straight, but Billy Mac persuaded him to adopt
the more sensible course of taking the road to Orton and tracing up
Merriwell.
“Let’s go up to your house, then,” said Clancy, “and load up with
some rations. Chip may be pretty hungry when we find him, and
there’s no knowing how long we’ll be gone. Besides, we’d better tell
your mother nothing of what we suspect. No use worrying her, Billy.”
This was sound argument, and when they arrived at the McQuade
home they said nothing of their uneasiness. Clancy stated that Chip
had been called over to Orton very unexpectedly, and that they were
going over to meet him, and might possibly proceed on to Fardale
without returning.
So, loading the Hornet with their belongings and a generous amount
of Mrs. McQuade’s toothsome edibles, the two started out on the
trail of Frank Merriwell, junior. Once outside of town, Clancy opened
up the Hornet and showed what she could do.
“I took her off the scrap heap,” he declared proudly, “and while she
doesn’t look up to much, she can certainly go some!”
Billy’s interest was only perfunctory, however. He was still thinking
about Chip and the Carson family.
“Funny we didn’t see Bully around town, Clan. He usually sports
around in his gay duds on Sunday, and runs an old car he bought
second-hand. The colonel sticks to horses, but Bully likes to make an
impression with his car.”
“I guess Merry gave him a black eye last night,” said Clancy. “That
may account for his failure to sport around. I guess the whole crowd
is laying low and keeping quiet for the present.”
Billy grunted, but relapsed into silence.
The Orton road was a rough one, and after the first mile Clancy had
to slow down a bit. They were going directly away from the railroad,
and as they proceeded without seeing any trace of the garage car,
they found that the country lost its prosperous aspect, and became
a good deal rougher and wilder.
More than once they passed rocky farms that had been abandoned
years before, although the flowering orchards around Carsonville
had proved that, with industry and skill, the country could be made
productive.
Mile after mile reeled off without any token of their quarry, other
than tracks of auto tires in the road, which might have been left by
any one of a dozen machines. At length they topped a rise and saw
Orton itself, two miles farther on. It was a miserably small place, and
Clancy’s heart sank.
“There’d be an elegant place to hold Merry prisoner,” said Billy,
pointing to a deserted farmhouse that stood back from the road to
one side. It was the fifth place he had pointed out with the same
idea, and Clancy grunted.
“You’re off, Billy. I don’t believe Merry was ever in this jay town.
There’s nothing to it but a blacksmith shop and a couple of stores.”
“But don’t you think that’s what’s happened?” persisted Billy Mac.
“No, I don’t. Chip may have been lured away, all right, but Colonel
Carson has too much gumption to work that kind of a racket,
according to my notion. No hotel here, is there?”
“No,” said Billy anxiously. “We can find out if Merry was here by
going to the smithy. The blacksmith lives just behind it.”
Orton was not even large enough to be possessed of a church, it
appeared. The little place seemed absolutely desolate in the Sunday
afternoon quiet, but as the Hornet drew up in front of the smithy,
Clancy saw that the blacksmith was standing under an apple tree,
watching them.
Leaping out, the two hastened into the orchard behind the smithy,
and proceeded to question the burly smith.
“I couldn’t say,” he responded to their inquiries. “I’ve seen two or
three machines go past, but didn’t pay much attention. Mebbe my
wife did. Hold on a minute.”
He turned and lifted a shout at the house in the rear. A tired-looking
woman came forth, and made response that she had seen Bully
Carson’s machine early that morning, but had not noticed the others.
“Bully Carson!” exclaimed Billy, in a low voice. “We’re on the trail,
Clancy!”
Clancy considered. If they were to make inquiries through the place,
it might be best to leave the Hornet here. Turning to the smith, he
found that the latter sold gasoline to the few cars coming through
the place, and arranged to leave the Hornet in his care.
Returning to the car, he brought it around behind the smithy, and
with Billy made his way to the tree-bordered street. An instant later,
Billy clutched his arm.
“I hear a car, Clan! It’s coming this way!”
The two friends stopped, the slow exhaust of a motor car coming
clearly from ahead of them. The car came into sight, running slowly
toward them. There was a single figure at the wheel.
“By gracious, it’s Bully!” cried McQuade excitedly.
The car rolled toward them at a slow pace.
“Get ready to jump her,” ordered Clancy, in a tense voice.
“What you going to do?”
“We’ll do a little kidnaping on our own hook, Billy. Watch out, now!”
CHAPTER XXIII.
THE THIRD DEGREE.
Carson was evidently quite unsuspecting. Possibly he did not see the
two figures that waited at the roadside. At all events his car rolled
slowly past the smithy, and, as it came opposite to their waiting
place, Clancy nudged Billy and leaped forth.
He believed in doing a thing thoroughly, when he was doing it.
Consequently, as he saw Bully twist around in his seat with a start of
alarm, Clancy gave him no chance to increase his speed, but put all
his energies into a flying leap.
A cry broke from Carson, but he was too late. Clancy rose in the air
like a bird and struck full against him, driving him down at once. The
two fell in a confused tangle under the steering wheel, while the car
went slowly along the road.
Meantime, Billy Mac jumped to the running board and piled into the
tonneau. He leaned over the back of the front seat. Before he could
lend assistance, the two figures came erect, and Clancy shoved
Carson bodily over into the tonneau.
“Keep him there, Mac,” he ordered.
“What you going to do?” gasped Billy.
“No time to talk,” said Clancy, jumping to the steering wheel. “Throw
a robe over that fellow’s head! Sit on him, you chump!”
Carson, indeed, was rising to the occasion. He had landed in the
tonneau on his head and shoulders, and was squirming upright,
letting out wild yells as he did so. The peace of the Sabbath was
being terribly shattered.
Billy Mac saved the day by adopting Clan’s suggestion. Seizing the
heavy blanket that did duty for an auto robe, he threw it over
Carson’s head, managed to evade the waving fists, and plumped
himself on top of the big fellow.
Carson was forced to the floor of the car, which had leaped into
speed under Clancy’s touch. Billy McQuade being a chunky fellow for
his age, made no light weight, and Carson’s bellows for help were
stifled.
So quickly had it all occurred, that, while Bully Carson must have
recognized his assailants, he had been too startled to propound any
questions. In fact, he had been hustled about so rapidly that when
Billy came down on him he had no more breath left with which to
shout.
After a moment Clancy stopped the car on a lonely stretch of road,
and told Billy to shove their prisoner out. Billy did not stand on
ceremony, but opened one of the side doors and sent Carson
tumbling out like a bag of flour.
The big fellow landed in the dust, came to his feet, flung off the
robe, and emerged, spluttering with rage.
“What’s this mean!” he exclaimed hotly. “I’ll have you dubs pinched
fer this!”
Clancy grinned.
“No, you won’t, Bully. You’re liable to get pinched yourself for what
took place last night. Where’s Chip Merriwell?”
“How do I know?” demanded Carson, working himself up into a
rage. “You’d better clear out, and do it quick, or I’ll smash your
carrot head in about——”
“No more of that talk,” said Clancy. “You’re a coward, my friend. If
you try fighting, you’ll get the worst of it by a good deal. Where’s
Chip Merriwell?”
Clancy gave no sign of his inward perturbation. He had conducted
this assault absolutely without evidence, and on a momentary
impulse. If he failed to extract any information, he was apt to find
himself up against the law.
“I don’t know anythin’ about him,” said Carson sullenly.
“Don’t lie,” said Clancy angrily. “You sent him a fake telegram that
got him over to Orton this morning. Where is he?”
Carson went white.
“How’d you know that——” he began, then checked himself and
tried to bluster it off. “You’re crazy, you boobs! I ain’t seen the feller
——”
“You make me sick,” said Clancy, with renewed self-confidence. “You
gave yourself away right there, Bully. Now come across, or take the
consequences.”
Carson glared at him out of his one good optic.
“I’ll show you!” he bellowed. “You ain’t a-goin’ to get clear with this
kind o’ doin’s around here——”
And turning swiftly, he shoved Billy Mac aside and made a break
down the road. Clancy grinned inwardly. Carson was not only scared,
but he was extremely anxious to get away.
Clancy caught the big fellow within fifty feet. Carson showed fight,
but the red-haired chap decided to waste no further time. Catching
the arm of Carson, he twisted it behind the other’s back, and had
him at his mercy.
“Take his arm, Billy,” he commanded. “Put him into the machine and
keep him quiet. If he yells for help, twist his arm and it’ll break just
below the elbow.”
Carson went green.
“Hey, what you fellers tryin’ to do?” he whimpered. “Ouch! I’ll go
along—don’t twist that arm, Billy! We allus been friends, ain’t we?”

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“No use—I can’t sleep a morning like this!”

“Great morning, Chip!”

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