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

question 34

Multiple Choice

Use the following information to answer the question(s) below.
On January 1,2011,Pardy Corporation acquired a 70% interest in the common stock of Salter Corporation for $7,000,000 when Salter's stockholders' equity was as follows:
There were no preferred dividends in arrears on January 1,2011.There are no book value/fair value differentials.
-Salter has a 2011 net loss of $200,000.No dividends are declared or paid in 2011.What is the change in Pardy's Investment in Salter for the year ending December 31,2011?

• A)$ 50,000
• B)$ 70,000
• C)$140,000
• D)$210,000

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Definitions:

Cartel

An agreement among competing firms to control prices, production, and market shares, often to maximize collective profits by reducing competition.

Organization of Sellers

A collective or group of sellers or producers that aims to promote common interests, often including market and price controls.

Supply Decisions

Choices made by firms regarding the quantity of goods or services to produce and offer for sale.

Ford

Ford refers to the Ford Motor Company, a major American automaker known for its mass production of automobiles and the pioneering of assembly line manufacturing techniques.