Assume That Parent Inc

question 26

Multiple Choice

Assume that Parent Inc. purchased a controlling interest in Sub Inc. on August 1, 2018 and decides to prepare an Income Statement for the combined entity on the date of acquisition. If Parent acquired 80% of Sub Inc. on that date, what would be the net income reported for the combined entity (for the year ended July 31, 2018) ?

• A) $104,000
• B) $120,000
• C) $130,000
• D)Nil

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Definitions:

Lexical Awareness

The recognition and understanding of words and their meanings, including their structure and the relationships between them.

Formal Operational Thought

The stage of cognitive development, according to Piaget, characterized by the ability to think logically about abstract propositions and test hypotheses systematically.

Memory Performance

An individual’s ability to recall or recognize previous experiences or information.

American Schoolchildren

American schoolchildren refer to children attending school within the United States, encompassing a diverse range of cultures, backgrounds, and educational experiences.