Target Company's Share Capital Consists of Class a Common Shares-Unlimited

question 47

Multiple Choice

Target Company's share capital consists of Class A common shares-unlimited authorized, 100,000 outstanding, 1 vote per share and Class B common shares- 100,000 authorized, 90,000 outstanding, 2 votes per share.If Parent Company bought 75,000 Class A shares, how should they account for their investment in Target Company?

• A)Consolidation method
• B)Equity method
• C)Cost method
• D)Fair value method

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Definitions:

Variable

In scripting, the name of a storage location in the computer’s internal memory. The value of the variable is the contents at that memory location. It is called a variable because the value can change (vary) as the program runs.

Script

A set of commands or instructions written to be executed by a program or scripting engine to automate tasks.

Memory Location

A specific address in memory storage where data is kept, identifiable within a system for the purpose of storing and retrieving information.

Scripts

Scripts are a sequence of instructions written in a scripting language executed by another program rather than the computer processor directly.