Assuming the Entity Theory Was Applied, What Would Be the Amount

question 32

Multiple Choice

Assuming the Entity Theory was applied, what would be the amount of Goodwill appearing on the Consolidated Balance Sheet on the Date of acquisition, assuming that Parent purchased 80% of Sub Inc. for $180,000?

• A) $88,000
• B) $130,000
• C) $137,000
• D)$138,000

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Definitions:

Marketing Plan

A detailed document outlining an organization's marketing strategies, tactics, budget, and timelines to achieve specific marketing objectives.

Social Control

Mechanisms, strategies, and institutions that societies use to regulate individual behavior and maintain social order.

Cultural Control

The practice of managing and influencing the cultural aspects of an organization to align with its goals and values.

Corporate Culture

Corporate Culture denotes the shared values, beliefs, attitudes, and practices that characterize an organization, influencing its decision-making and work environment.