A Company Had Common Stock with a Total Par Value

question 95

Multiple Choice

A company had common stock with a total par value of $26,000,000 and fair value of $70,000,000; and 8% preferred stock with a total par value of $9,000,000 and a fair value of $12,000,000. The book value of the company was $90,000,000. Assuming 85% of the company's total equity is acquired, what amount must be attributed to the noncontrolling interest?

• A) $8,700,000.
• B) $10,500,000.
• C) $12,300,000.
• D) $13,500,000.
• E) $17,400,000.

---

Definitions:

Collaboration

The action of working with someone to produce or create something.

Beneficial

Having a positive effect; helpful or advantageous to individuals or situations.

Compromise

A method of resolving disagreements where all parties make concessions to reach a mutually acceptable decision.

Concedes

The act of acknowledging or yielding to another's point, request, or judgment, often after a period of resistance or dispute.