Arnez Ltd Acquired 70% of the Outstanding Common Shares of Bedard

question 12

Multiple Choice

Arnez Ltd. acquired 70% of the outstanding common shares of Bedard Ltd. At the acquisition date, Bedard's net identifiable assets had a carrying value of $825,000 and a fair market value of $1,000,000. Arnez paid $910,000 for the acquisition. Under the entity method, what amount should be reported for the non-controlling interest on the consolidated statement of financial position?

• A)$210,000
• B)$247,000
• C)$300,000
• D)$390,000

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and low blood-glucose concentration, playing an important role in the body's fight-or-flight response.

Method of Transmission

The way in which a disease spreads from one individual or organism to another.

Biopsychosocial Model

A holistic approach to diagnosing and treating illnesses by considering biological, psychological, and social factors.