A New Subsidiary Is Being Formed

question 38

Multiple Choice

A new subsidiary is being formed.The parent company purchased 70% of the shares for $20 per share.The remaining shares were sold to a variety of outside interests for an average of $22 per share.The consolidated statements will show

• A)​a gain.
• B)​a loss.
• C)​only cash and related equity.
• D)​goodwill.

---

Definitions:

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes.

Henry Molaison (H.M.)

A patient who became an important case study in the understanding of memory after undergoing a surgical procedure that left him with severe anterograde amnesia.

Explicit Memories

Memories that can be consciously recalled, such as facts and events, and are part of the declarative memory system.

Long-Term Memory (LTM)

In the three-box model of memory, the memory system involved in the long-term storage of information.