Starts Has a 60% Joint Operation Interest in Fish

question 10

Multiple Choice

Starts has a 60% joint operation interest in Fish. Based on the following information, what amount will be presented for current liabilities on Starts' proportionately consolidated balance sheet?

• A)$550
• B)$470
• C)$350
• D)$200

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Definitions:

Par Common Stock

The nominal or face value of common stock as specified in the corporate charter, which bears no direct relation to its market value.

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, although not affecting the company's overall market capitalization.

Retained Earnings

The portion of a company's profits not distributed as dividends to its shareholders but kept in the company to reinvest in its core business or to pay debt.