On January 1,20X8,Zeta Company Acquired 85 Percent of Theta Company's

question 16

Multiple Choice

On January 1,20X8,Zeta Company acquired 85 percent of Theta Company's common stock for $100,000 cash.The fair value of the noncontrolling interest was determined to be 15 percent of the book value of Theta at that date.What portion of the retained earnings reported in the consolidated balance sheet prepared immediately after the business combination is assigned to the noncontrolling interest?

• A) None
• B) 15 percent
• C) 100 percent
• D) Cannot be determined

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Definitions:

Platinum

The native metallic element (Pt) and metal alloys that contain it.

Sedimentary Resource

Natural resources, such as coal or oil, originating from the accumulation and lithification of sediment.

Gravel

Coarse granular material, consisting of rounded or angular fragments, often used in construction and landscaping.

Transgression

The advance of the sea across the land and the evidence of such an advance.