The Following Consolidation Adjusting Journal Entries Appeared at the End

question 15

Multiple Choice

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary. It received $1,200,000 for the shares.

At the time of the sale of the shares, the parent was holding the investment in subsidiary at what amount, in its own books?

• A) $450,000.
• B) $700,000.
• C) $950,000.
• D) $1,450,000.
• E) Cannot be determined from the information given.

---

Definitions:

Writ of Certiorari

A writ from a higher court asking a lower court to send it the record of a case for review. The United States Supreme Court uses certiorari to review most of the cases it decides to hear.

U.S. Courts of Appeals

Intermediate appellate courts in the federal court system that review decisions of federal district courts, regulatory commissions, and other federal courts.

District Court Decisions

Rulings or judgments made by District Courts, which are often initial points of litigation within the federal or state court systems.

Circuit Courts

Courts that have jurisdiction over a specific geographic area or circuit, handling appeals and serious criminal and civil cases.