If Nolte Company Acquired a 20% Interest in Boswell Company

question 76

Multiple Choice

If Nolte Company acquired a 20% interest in Boswell Company on December 31, 2011 for $65,000 and the equity method of accounting for the investment was used, the amount of the debit to Investment in Boswell Company would have been

• A)$45,000.
• B)$37,000.
• C)$60,000.
• D)$65,000.

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Definitions:

Stroke

A medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, preventing brain tissue from getting oxygen and nutrients.

Arteriosclerosis

A condition characterised by the thickening, hardening, and loss of elasticity of the walls of arteries, leading to restricted blood flow.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a crucial indicator of cardiovascular health.