Use the Following Information to Answer the Question(s) Below -Under the Entity Theory,a Consolidated Balance Sheet Prepared Immediately After

question 47

Multiple Choice

Use the following information to answer the question(s) below.

Pasfield Corporation acquired a 90% interest in Santini Corporation for $90,000 cash on January 1, 2014. The following information is available for Santini at that time
$\begin{array}{lccr}&\text { Book Value}&\text { Fair Value }&\text { Difference }\\\text { Current assets } & \$ 40,000 & \$ 50,000 & \$ 10,000 \\\text { Plant assets } & 60,000 & 75,000 & 15,000 \\\text { Liabilities } & \underline{(50,000) } & \underline{(50,000) } & 0 \\\text { Net assets } & \underline{\underline{\$ 50,000}} & \underline{\underline{\$ 75,000}} &\end{array}$

-Under the entity theory,a consolidated balance sheet prepared immediately after the business combination will show noncontrolling interest of

• A)$5,000.
• B)$7,500.
• C)$9,000.
• D)$10,000.

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Definitions:

Senators

Members of the senate, the upper chamber of the legislature in many countries, responsible for making and passing laws.

Electoral Votes

The votes cast by electors in the Electoral College, determining the winner of U.S. presidential elections.

House

Often referring to the House of Representatives, it is one of the two chambers of the United States Congress, the other being the Senate; members are elected to represent districts within states.

Senate

One of the two houses of the legislature in many countries, often tasked with reviewing and consenting to legislation, appointments, and treaties.