Partridge Purchased a 60% Interest in Sparrow on January 1

question 19

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. During the first 6 months of 20X6, $25,000 was earned by Sparrow. The entire investment was sold for $300,000 on July 1, 20X6. The gain (loss) was ____.

• A)$87,000
• B)$78,000
• C)$12,000
• D)$60,000

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Definitions:

Customer Satisfaction

Customer Satisfaction is a measure of how products or services supplied by a company meet or surpass customer expectations.

Dissatisfied

A feeling of unhappiness or discontentment due to unmet expectations or needs.

Reduce

To make something smaller or less in amount, degree, or size.

Affective Commitment

An employee's emotional attachment to, identification with, and involvement in a particular organization.