The Following Consolidation Adjusting Journal Entries Appeared at the End

question 16

Multiple Choice

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary.It received $1,200,000 for the shares. At the time of the sale of the shares,the parent was holding the investment in subsidiary at what amount,in its own books?

• A) $450,000.
• B) $700,000.
• C) $950,000.
• D) $1,450,000.
• E) Cannot be determined from the information given.

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Definitions:

F Statistic

A ratio used in statistical analysis to determine the relationship between variances and to test hypotheses about the means of several populations.

Alternative Hypothesis

In statistical hypothesis testing, it is the hypothesis that suggests there is a difference or effect, in contrast to the null hypothesis which suggests no effect or difference.

Population Mean

The average characteristic or measure of a total population, representing a central or typical value of the population data.

Common Standard Deviation

A measure used in the context of comparing groups that assumes all groups have the same standard deviation, often used in analyses such as ANOVA.