Pinehollow Acquired 70% of the Outstanding Stock of Stonebriar by Issuing

question 39

Multiple Choice

Pinehollow acquired 70% of the outstanding stock of Stonebriar by issuing 70,000 shares of its $1 par value stock. The shares have a fair value of $15 per share. Pinehollow also paid $25,000 in direct acquisition costs. Prior to the transaction, the companies have the following balance sheets: The fair values of Stonebriar's inventory and plant, property and equipment are $700,000 and $1,000,000, respectively. What is the amount of the noncontrolling interest that will be included in the consolidated balance sheet immediately after the acquisition?

• A)$450,000
• B)$360,000
• C)$315,000
• D)$420,000

---

Definitions:

Personality Differences

Variations among individuals in patterns of thinking, feeling, and behaving that make each person unique.

Rorschach Inkblot Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both.

Projective

Relating to techniques or tests used in psychology to assess personality and emotions based on an individual's responses to ambiguous stimuli.

Observational

Relating to the acquisition of knowledge or information through watching the behaviors of others or noting phenomena as they occur.