Use the Following Information to Answer the Question(s)below

question 35

Multiple Choice

Use the following information to answer the question(s) below.
On January 1,2014,Penelope Company acquired a 90% interest in Leah Company for $180,000 cash.On January 1,2014,Leah Company had the following assets and liabilities: Push-down accounting is used for the acquisition.
-Assume the entity theory is used.On January 2,2014,Leah Company will report Goodwill of ________ and Accounts Receivable of ________ on Leah's balance sheet.

• A)$27,000;$30,000
• B)$27,000;$34,500
• C)$30,000;$30,000
• D)$50,000;$35,000

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Definitions:

Chief Administrator

The highest-ranking official in charge of managing and supervising the operations of a particular organization or governmental body.

Executive Branch

The branch of government responsible for executing and enforcing laws, typically headed by the president or prime minister.

Administrative Process

A series of procedures and operations carried out by a government or an organization to execute policies, decisions, or laws.

Zone of Interests

A legal concept that determines whether a party has sufficient stake in a controversy or issue to bring a lawsuit based on statutory or constitutional standing requirements.