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

question 18

Multiple Choice

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

Paris Corporation purchased 80% of the outstanding voting common stock of Sanders Corporation on January 1, 2014, at a cost of $400,000. The stockholders' equity of Sanders Corporation on this date consisted of $200,000 of Capital Stock and $100,000 of Retained Earnings. Book values were equal to fair values except for land and inventory. The book value of Sanders' land was $10,000, and fair value was $22,000. The book value of Sanders' inventory was $30,000, and fair value was $25,000.

-Under the parent company theory,what amount of goodwill was reported on the consolidated balance sheet at December 31,2014?

• A)$148,000
• B)$153,000
• C)$154,400
• D)$160,000

---

Definitions:

Method Section

A part of a research paper that describes how the study was conducted, including participants, materials, and procedure.

Discussion Section

The discussion section of a research paper is where the implications, significance, and context of the findings are elaborated upon and examined against existing literature or theories.

Alcohol-Related Crash

A vehicular accident in which at least one participant was under the influence of alcohol.

Severity of Injuries

The level or degree of seriousness or intensity of injuries sustained by individuals.