When Jolt Co

question 116

Multiple Choice

When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000.
What is the amount of excess land allocation attributed to the non-controlling interest at the acquisition date?

• A) $0.
• B) $30,000.
• C) $22,500.
• D) $7,500.
• E) $17,500.

---

Definitions:

Compound Entry

An accounting entry that involves more than two accounts, where there are multiple debits, multiple credits, or both in a single transaction.

Account

A summary document that captures every transaction associated with an individual entry in the accounting balance equation.

Financial Information

This encompasses all the data regarding the financial status, performance, and changes in financial position of an entity.

Normal Balance

The side (debit or credit) of an account that is increased. For example, assets increase on the debit side, while liabilities increase on the credit side.