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:

Vasoconstriction

The narrowing of blood vessels, which decreases blood flow and increases blood pressure, often as a response to cold temperatures or stress.

Capillaries

Small blood vessels that connect arterioles and venules, facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste chemical substances between blood and surrounding tissues.

Homeostatic Behaviors

Actions taken by organisms to maintain internal equilibrium, such as regulating temperature or hydration levels.

Feedback Mechanisms

Biological processes that regulate bodily functions and maintain homeostasis through a system of inputs and outputs responding to changes in the environment or internal conditions.