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:

Installment Note

A debt instrument that requires a series of periodic payments made over time, typically including both principal and interest.

Carrying Amount

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus accumulated depreciation, amortization, or impairment costs.

Carrying Value

The net amount at which an asset or liability is valued in the balance sheet, considering factors like depreciation, amortization, or impairment charges.

Bond Redemption

The process in which a bond issuer returns the bond's principal amount to the bondholders and terminates the bond.