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

question 11

Multiple Choice

Use the following information to answer the question(s) below.
On January 1,2011,Penelope Company acquired a 90% interest in Leah Company for $180,000 cash.On January 1,2011,Leah Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.
-Assume the entity theory is used.On January 2,2011,Leah Company will report Goodwill of ________ and Accounts Receivable of ________ on Leah's balance sheet.

• A)$27,000;$30,000
• B)$27,000;$34,500
• C)$30,000;$30,000
• D)$50,000;$35,000

---

Definitions:

Photosynthetic Mode

A method by which plants, algae, and some bacteria convert light energy into chemical energy stored in glucose.

CAM

A type of photosynthesis (Crassulacean Acid Metabolism) adapted by some plants to minimize water loss in arid conditions by fixing CO2 at night.

CAM Plants

Plants that utilize Crassulacean Acid Metabolism, a carbon fixation pathway that allows them to conserve water in arid conditions by opening their stomata at night.

Stomata

Microscopic openings on the surfaces of leaves and stems that regulate gas exchange and water vapor between the plant and the atmosphere.