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

question 15

Multiple Choice

Use the following information to answer the question(s) below.
Bower Corporation purchased a 70% interest in Stage Corporation on June 1,2010 at a purchase price of $350,000.On June 1,2010,the book values of Stage's assets and liabilities were equal to fair values.On June 1,2010,Stage's stockholders' equity consisted of $290,000 of Common Stock and $210,000 of Retained Earnings.All cost-book differentials were attributed to goodwill.
During 2010,Stage earned $120,000 of net income,earned uniformly throughout the year and paid $6,000 of dividends on March 1 and another $6,000 on September 1.
-Preacquisition income for 2010 is

• A)$50,000.
• B)$35,000.
• C)$44,000.
• D)$36,000.

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Definitions:

Amygdala

A part of the brain's limbic system involved in emotion processing, fear responses, and the formation of emotional memories.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral or expressive response.

Fear

An emotional response to a perceived threat, which prepares the body for fight or flight.

Posttraumatic Stress Disorder

A psychological disorder characterized by severe anxiety, flashbacks, and other symptoms following a traumatic event.