On January 1,2012,a Parent Company Acquired All of the Stock

question 67

Multiple Choice

On January 1,2012,a parent company acquired all of the stock of a subsidiary.The following data is available: The acquisition by the parent company represents a 100 percent interest in the subsidiary.On January 1,2012,the fair value of the subsidiary's assets and liabilities are equal to their book value.The parent company paid $250 for the 100 percent interest in the subsidiary.What amount of goodwill is implied in the purchase?

• A)$0
• B)$10
• C)$40
• D)$200

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Definitions:

Adventitious Sounds

Unusual sounds heard during respiration, such as crackles, wheezes, or stridor, which are indicative of respiratory conditions.

Trachea Bifurcate

The point at which the trachea splits into two bronchi, facilitating air passage into the lungs.

Sternal Angle

A palpable anatomical landmark also known as the angle of Louis, where the manubrium meets the body of the sternum, used in clinical assessments.

Suprasternal Notch

A visible dip or hollow at the base of the neck, above the sternum, where the clavicles meet.