Partridge Purchased a 60% Interest in Sparrow on January 1

question 29

Multiple Choice

Partridge purchased a 60% interest in Sparrow on January 1, 20X1, for $240,000. At the time of the purchase, Sparrow had the following stockholders' equity: Any excess is attributable to equipment with a 10-year life. On January 1, 20X6, the retained earnings of Sparrow was $175,000. The entire investment was sold for $300,000 on January 1, 20X6. The gain was ____.

• A)$87,000
• B)$90,000
• C)$27,000
• D)$78,000

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Definitions:

Medical Paralegals

Specialized paralegals who focus on legal issues related to healthcare, including medical malpractice and personal injury cases.

Medical Aspects

The health-related components or considerations of a condition, situation, or subject of study.

Legal Claims

Assertions of legal rights or demands for relief, damages, or enforcement in a legal setting.

Geographic Location

The specific physical place or position of something on the earth's surface, determined by coordinates.