Parent and Sub Inc On January 1, 2020, Parent Purchased All of Sub Inc

question 6

Multiple Choice

Parent and Sub Inc. had the following balance sheets on December 31, 2019: $\begin{array}{|l|r|r|}\hline & \text { Parent } & \text { Sub } \\\hline \text { Current Assets } & \$ 60,000 & \$ 10,000 \\\hline \text { Fixed Assets (net) } & \$ 100,000 & \$ 60,000 \\\hline \text { Total Assets } & \$ 160,000 & \$ 70,000 \\\hline \text { Current Liabilities } & \$ 42,000 & \$ 35,000 \\\hline \text { Bonds Payable } & \$ 20,000 & \$ 12,000 \\\hline \text { Common Shares } & \$ 90,000 & \$ 12,000 \\\hline \text { Retained Earnings } & \$ 8,000 & \$ 11,000 \\\hline \text { Total Liabilities and Equity } & \$ 160,000 & \$ 70,000 \\\hline\end{array}$ On January 1, 2020, Parent purchased all of Sub Inc.'s Common Shares for $40,000 in cash. On that date, Sub's Current Assets and Fixed Assets were worth $26,000 and $54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, answer the following:
The Shareholders' Equity section of the Consolidated Balance Sheet would show what amount?

• A) $19,000
• B) $90,000
• C) $98,000
• D) $121,000

Estimate additional revenue or cost savings required to make an investment project financially attractive.

Understand the real-world consequences of data breaches on corporate leadership and organizational structure.

Identify various types of cyber threats and the technologies designed to counter them.

Comprehend the importance and methods of auditing in information security.

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Definitions:

Manufacturing Process

The sequence of operations or techniques used to transform raw materials into finished goods.

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business unit, division, department, or an operating unit within an organization.

Unfavorable Performances

Situations where the outcomes of business activities fall short of expectations or benchmarks, often leading to negative impacts on financial health or operational efficiency.

Manufacturing Process

The sequence of operations or methods used to convert raw materials into finished goods.