Catalyst Corporation Acquired 90 Percent of Trigger Corporation's Common Stock

question 44

Multiple Choice

Catalyst Corporation acquired 90 percent of Trigger Corporation's common stock on September 30, 20X8 for $225,000. At that date, the fair value of the noncontrolling interest was $25,000. On January 1, 20X8, Trigger reported the following stockholders' equity balances: Trigger reported net income of $80,000 in 20X8, earned uniformly throughout the year, and declared and paid dividends of $10,000 on June 30 and $30,000 on December 31, 20X8. Catalyst reported retained earnings of $250,000 on January 1, 20X8, and had 20X8 income of $120,000 from its separate operations. Catalyst paid dividends of $50,000 on December 31, 20X8. Catalyst accounts for its investment in Trigger Corporation using the fully adjusted equity method.
Based on the information provided, what is the amount of consolidated retained earnings as of December 31, 20X8?

• A) $340,000
• B) $250,000
• C) $338,000
• D) $388,000

Relate inflation, employment, and GDP to economic theories.

Describe the historical context and evolution of economic thought from classical to Keynesian perspectives.

Understand the universality and cultural diversity of emotional expressions.

Recognize the stereotypes and realities about gender differences in emotional expression.

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Definitions:

True Score

The true score in psychometrics is an estimate of an individual's actual ability or trait level, free from measurement error.

Error Score

The difference between an observed value and the true value in data collections or experiments, indicating the amount of error in measurements.

Real Score

The actual measurement or true value that reflects the characteristic or ability being assessed, without error.

Measure of Reliability

An indicator of the consistency or stability of a measurement instrument or test over time.