A Company Owning a Majority (But Less Than 100%) of Another

question 53

Multiple Choice

A company owning a majority (but less than 100%) of another company's voting shares on the date of acquisition should account for its subsidiary (in its consolidated balance sheet) :

• A) by including only its share of the fair market values of the subsidiary's net assets.
• B) by including only its share of the book values of the subsidiary's net assets.
• C) by including 100% of the fair market values of the subsidiary's net assets.
• D) by including 100% of the fair market values of the subsidiary's net assets and accounting for any unowned portion of the subsidiary's voting shares using the Non-Controlling Interest account.

---

Definitions:

Generalizable

Capable of being applied to different situations or contexts beyond the original study conditions or parameters.

Convergence of Data

The process where multiple pieces of data, often from different sources or methodologies, come together to support a cohesive conclusion or finding.

Intensive Single-Subject

A research methodology that focuses deeply on a single subject, exploring aspects or phenomena in great detail.

Quantitative Design

A research strategy that focuses on quantifying the collection and analysis of data.