The Net Incomes for Parent and Sub Inc for the Year

question 56

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. The Shareholders' Equity section of Parent's Consolidated Balance Sheet on the date of acquisition would total what amount under the Entity Method?

• A) $140,000
• B) $185,000
• C) $244,000
• D) $270,000

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Definitions:

Environmental Assessment

A process used to evaluate the environmental impacts of a proposed project to ensure that decisions are made in an environmentally responsible manner.

EIS

Environmental Impact Statement, a document required for certain actions significantly affecting the quality of the human environment, detailing the impact and alternatives.

Public

The general population or community at large, especially as it interacts with or is affected by governmental policies or actions.

Industrially Polluted Property

Land that has been contaminated by industrial activities, potentially hazardous to health or the environment.