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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