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.

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Definitions:

Somatic Sensing

The body's ability to sense stimuli from the environment or within itself, including touch, temperature, pain, and proprioception.

Countersensation

A technique involving the introduction of a sensation to counteract or mask another sensation, often used in pain management.

Sensory Adaptation

The reduction in sensitivity to a stimulus after constant exposure to it.