Wholly Owned Subsidiary Has the Following Balances at Control Date

question 25

True/False

Wholly owned Subsidiary has the following balances at control date 20X1:
$$\begin{array} { l l } \text { Capital } & \$ 500000 \\\text { Asset revaluation reserve } & \$ 200000 \\\text { Retained profits } & \$ 100000\end{array}$$
Parent paid $900 000 for the shares of Subsidiary.The tax rate is 30%.
In the consolidation for 20X1, recognition of goodwill generates a deferred tax asset of
$30 000.

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Definitions:

Targeting Strategy

The method a business uses to identify and serve potential consumer segments with tailored products or marketing.

Potential Savings

The amount of money that could be saved or the reduction in costs that could be achieved under different circumstances or by implementing certain strategies.

Marketing

The collection of activities, organizations, and processes involved in producing, distributing, and promoting goods that provide value to consumers, business partners, and the wider community.

Niche Marketing

A targeted marketing strategy focusing on a specific portion of the market with unique preferences or requirements.