Company Y Purchases a Controlling Interest in Company Z on January

question 49

Multiple Choice

Company Y purchases a controlling interest in Company Z on January 1, 2018. 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.

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Definitions:

Sampling Distribution

A probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Bell Shaped

Describes a distribution that is symmetrical and peaked in the middle, resembling the shape of a bell, often referring to the normal distribution.

Sampling Distribution

Likelihood patterns of a specific statistic that are based on randomly chosen samples.

Normally Distributed

Describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.