Assuming That Parent Inc

question 33

Multiple Choice

Assuming that Parent Inc. purchased 80% of Sub's voting shares on the date of acquisition (August 1, 2018) for $180,000, what would be the amount of the Non-Controlling Interest (NCI) on the date of acquisition if the Entity Method were used?

• A) $26,000
• B) $38,000
• C) $45,000
• D)$104,000

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Definitions:

Equilibrium Market Price

The cost level where the amount of products offered matches the amount of products sought after in a marketplace.

Downward Pressure

A force or condition that causes prices or values to decrease or decline in a market.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that producers are willing to sell.

Battery Packs

Devices composed of multiple batteries or cells configured together to provide the required voltage, current, and energy density for electronic devices.