A Company Had Common Stock with a Total Par Value

question 102

Multiple Choice

A company had common stock with a total par value of $18,000,000 and fair value of $62,000,000; and 7% preferred stock with a total par value of $6,000,000 and a fair value of $8,000,000.The book value of the company was $85,000,000.Assuming ninety percent (90%) of the company's total equity is acquired, what amount must be attributed to the noncontrolling interest?

• A) $8,500,000.
• B) $7,000,000.
• C) $6,200,000.
• D) $2,400,000.
• E) $6,929,400.

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Definitions:

Transcriptional Activity

The process of copying a segment of DNA into RNA by the enzyme RNA polymerase, crucial in gene expression.

Noncoding Region

Sections of DNA that do not code for proteins but may have regulatory roles in gene expression, chromatin structure, and genome organization.

IGF2 Gene

A gene that encodes the insulin-like growth factor 2, playing a crucial role in growth and development, especially fetal growth.

Lactose Repressor

The lactose repressor is a protein that binds to the promoter region of the lactose operon in bacteria, regulating the metabolism of lactose by inhibiting the transcription of lactose-utilizing genes.