Company Y Purchases a Controlling Interest in Company Z on January

question 51

Multiple Choice

Company Y purchases a controlling interest in Company Z on January 1, 2012. Which of the following would appear as the Shareholders' Equity amount on Company Y's Consolidated Balance Sheet on the date of acquisition?

• A) Company Y's Shareholders' Equity.
• B) The sum of the Shareholders' Equity of both companies.
• C) Company Y's Shareholders' Equity as well as Company Y's proportional share of company Z's net assets at book value.
• D) Company Y's Shareholders' Equity as well as Company Y's proportional share of company Z's net assets at Fair Market Value.

---

Definitions:

Chi-squared Goodness-of-fit

A statistical test to determine if sample data fits a population with a specific distribution, comparing observed values to expected values.

Contingency Table

A type of table used in statistics to summarize the relationship between several categorical variables.

Nominal Variable

A type of variable used in statistics that represents categories without any natural order or rank.

Critical Factors

Essential elements or conditions that significantly impact the outcome or success of a project, process, or strategy.