Perch Co Acquired 80% of the Common Stock of Float Corp

question 100

Multiple Choice

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded.
What is the dollar amount of Float Corp.'s net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition?

• A) $1,600,000.
• B) $1,480,000.
• C) $1,200,000.
• D) $1,780,000.
• E) $1,850,000.

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Definitions:

Employee Productivity

A measure of an employee's output or efficiency within a specific period of time, often evaluated to gauge performance and effectiveness.

Dexterity

Dexterity refers to the skill and grace in physical movement, especially the hands, and the ability to perform tasks requiring a high level of manual coordination.

Standard Deviation

A tool for measuring how far apart or closely grouped a set of numerical entries are.

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