Use the Following Information for Questions 19-21

question 17

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.
-Assuming no other equity transactions, the amount of the difference between implied and book value that would be added to land on a work paper for the preparation of consolidated statements on December 31, 2013 would be

• A)$120,000.
• B)$115,000.
• C)$105,000.
• D)$84,000.

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Definitions:

Reminiscing

The act of recalling and sharing memories, often fondly, from the past.

Presbyopia

Loss of elasticity of the lens and thus loss of ability to see close objects as a result of the aging process.

Lens Flexibility

The ability of the eye's lens to change shape to focus on objects at various distances, decreasing with age.

Near-Sightedness

A common vision condition, also known as myopia, where close objects are seen clearly, but distant ones are blurred due to the shape of the eye.