Use the Following Information for Questions 19-21

question 20

Multiple Choice

Use the following information for Questions 19-21.
On January 1, 2009, Pharma Company purchased 16,000 of the 20,000 outstanding common shares of Sludge Company for $760,000.On January 1, 2013, Pharma Company sold 2,000 of its shares of Sludge Company on the open market for $90 per share.Sludge Company's stockholders' equity on January 1, 2009, and January 1, 2013, was as follows:
1/1/09 1/1/13 The difference between implied and book value is assigned to Sludge Company's land.
-The amount of the gain on sale of the 2,000 shares that should be recorded on the books of Pharma Company is

• A)$34,000.
• B)$85,000.
• C)$48,000.
• D)$100,000.
• E)None of these.

---

Definitions:

Organizational Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution or organization.

Social Control

Mechanisms, strategies, or structures aimed at regulating individual or group behavior within a society or organization to ensure conformity and compliance to rules or norms.

Weak Cultures

Refers to organizational cultures where there is little agreement on the values, norms, and behaviors expected from employees, leading to inconsistency and varied interpretations.

Overlapping Values

Shared beliefs or principles among different groups or individuals within an organization, which often facilitate cooperation and reduce conflict.