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.

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Definitions:

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality identities within the same individual, often resulting from severe trauma.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Frontal Lobes

Regions of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Reduced Self-Control

Pertains to a decreased ability to regulate one's actions, emotions, or desires, often leading to impulsive behaviors.