Assuming That the Proprietary Theory Was Applied, What Would Be

question 10

Multiple Choice

Assuming that the Proprietary 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 on August 1, 2018?

• A) $72,000
• B) $88,000
• C) Nil
• D)Cannot be determined from the information given.

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Definitions:

Tempting Situations

Circumstances that present a strong attraction or inclination to engage in a particular action, often one that might be considered unwise or harmful.

Maintenance Stage

In behavior change models, this stage refers to the sustained effort to avoid relapse and consolidate the gains achieved during the action stage.

Relapse

A return to former unhealthy patterns.

Maintenance Stage

A phase in behavior change where individuals work to sustain new habits and prevent relapse into previous behaviors.