Use This Information to Answer the Following Question

question 177

Multiple Choice

Use this information to answer the following question. The total amount of working capital is

• A) $70,000.
• B) $180,000.
• C) $124,000.
• D) $500,000.

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Definitions:

Goodwill

represents the excess of the purchase price over the fair value of the net assets of the acquired company in a business combination.

NCI

Non-Controlling Interest, a line item on the consolidated balance sheet that reflects the equity in a subsidiary not attributable directly or indirectly to the parent company.

Consolidation Approach

An accounting method used where a parent company combines its financial statements with those of its subsidiaries as if they comprise a single entity.

Parent-Company Method

An approach in consolidation where the financial statements of the parent company include its subsidiaries' operations by integrating their assets, liabilities, and equity as if they were wholly owned.