Helena Cobegan Operations on January 1,2014,with $100,000 from the Issuance of of Stock

question 24

Multiple Choice

Helena Co.began operations on January 1,2014,with $100,000 from the issuance of stock and borrowed funds of $15,000.Net income for 2014 was $5,000 and Helena paid a $400 cash dividend on December 15.No additional activities affected owners' equity in 2014.At December 31,2014,Helena's liabilities had increased to $18,800.In Helena's December 31,2014,balance sheet,total assets should be reported at

• A) $119,600.
• B) $120,000.
• C) $123,400.
• D) $138,400.

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Definitions:

Noncontrolling Interest

A shareholder's equity in a corporation that doesn't give the shareholder a controlling interest, representing a share of equity and earnings not owned by the parent company.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, from its revenues.

Domestic Corporations

Companies that are incorporated and operate within the legal boundaries of a country.

Excess Fair Value

The amount by which the fair value of an asset exceeds its carrying value on the balance sheet, often recognized during business combinations.