A Co Has Acquired an 80% Controlling Interest in B Co

question 32

Multiple Choice

A Co. has acquired an 80% controlling interest in B Co. If using the proportionate consolidation method, the consolidated balance sheet on the date of acquisition, will contain:

• A) the parent's pro rata share of the assets and liabilities of the subsidiary at book value.
• B) 100% of the assets and liabilities of the subsidiary at fair market value.
• C) 100% of the assets and liabilities of the subsidiary at book value.
• D) the parent's pro rata share of the assets and liabilities of the subsidiary at fair market value.

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Definitions:

Risperdal

A brand name for risperidone, an antipsychotic medication used to treat various mental health conditions.

Positive Symptom

Features that are present in individuals with a condition but are absent in healthy individuals, such as hallucinations or delusions often seen in schizophrenia.

Hallucinations

Experiencing sights, sounds, or other sensations that are not present or not perceived by others.

Antipsychotic Medications

Drugs essentially used to manage psychosis, including delusions, hallucinations, and disorders like schizophrenia.