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

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Definitions:

Cardiovascular Disease

A group of conditions affecting the heart or the blood vessels, including coronary artery disease, hypertension, and stroke.

Race

A social construct that categorizes individuals based on physical characteristics, ancestry, historical affiliation, or shared culture, often influencing societal roles and interactions.

Epidemiologic Research

The study of the distribution and determinants of health-related states or events in specific populations, and the application of this study to control health problems.

Ethical Principle

Fundamental guidelines or rules that help govern behaviors and decisions, often in professional and philosophical contexts, based on concepts of right and wrong.