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

question 12

Multiple Choice

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

Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.

-The controlling interest share of consolidated net income for the current year is

Definitions:

Lapsed

Refers to something that has expired or fallen out of use, often due to the passage of time or failure to renew.

Verbal Offer

An offer made orally, rather than in writing, typically in contexts of negotiation, sales, or employment arrangements.

Silence

The absence of any sound or noise; in legal terms, it may refer to the situation where a party's failure to speak or act is interpreted as consent or agreement.

Consumer Protection Legislation

Laws designed to safeguard the rights and interests of consumers by regulating trade practices and ensuring fair transactions.