Use the Following Information to Answer the Question(s)below

question 15

Multiple Choice

Use the following information to answer the question(s) below.
Pascoe Corporation paid $450,000 for a 90% interest in Sarabet Corporation on January 1,2011,when Sarabet's stockholders' equity consisted of $250,000 Common Stock and $50,000 Retained Earnings.The book values and fair values of Sarabet's assets and liabilities were equal when Pascoe acquired its interest.
The separate net incomes (excluding investment income) of Pascoe and Sarabet for 2011 were $600,000 and $100,000,respectively.Dividends declared and paid during 2011 were $250,000 for Pascoe and $50,000 for Sarabet.Pascoe uses the entity theory in consolidating its financial statements with those of Sarabet.
-Goodwill was reported in the December 31,2011 consolidated balance sheet at

• A)$170,000.
• B)$180,000.
• C)$200,000.
• D)$210,000.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to prolonged stress, as proposed by Hans Selye.

Panicked

A sudden, overwhelming feeling of fear or anxiety that often results in hasty or irrational behavior.

Alarm Reaction

A phase in the general adaptation syndrome where the body initially responds to a stressor with changes that temporarily lower resistance.

Type A

Type A refers to a personality pattern characterized by high levels of competitiveness, self-driven urgency, and a constant sense of time pressure.