The Net Incomes for Parent and Sub Inc for the Year

question 45

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. 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 once again that Parent purchased 80% of Sub Inc. for $180,000?

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

Examine how cultural, social, and personal factors influence developmental milestones and identity formation.

Understand the impact of differing security laws on the human right to privacy due to the growth of the Internet.

Comprehend the concept of a living wage and distinguish it from the minimum wage.

Identify products and services vulnerable to protectionism according to the World Trade Organization.

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Definitions:

Contract Price

The total monetary amount agreed upon by the parties involved in a contract for the exchange of goods, services, or property.

Installment Sale

A financial arrangement allowing the buyer to make payments over a specified period of time, often used in real estate transactions.

Personal Residence

A property where the taxpayer lives for the majority of the tax year, often qualifying for tax benefits like the mortgage interest deduction.

Selling Expenses

Costs incurred directly in the selling or distribution of goods or services, such as advertising, promotional materials, and sales staff salaries.