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:

Collaborative Consumption

The shared use of a good or service by a group, an economic model often seen in peer-to-peer exchange platforms.

Peer Economy

An economic system that relies on the sharing or exchange of goods, services, or information among individuals or groups, often facilitated by internet platforms.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or country.

Technical Knowledge

The understanding and expertise related to specific fields of technology, engineering, or any specialized practical domain.