On January 1, 20X9, Heathcliff Corporation Acquired 80 Percent of Garfield

question 26

Multiple Choice

On January 1, 20X9, Heathcliff Corporation acquired 80 percent of Garfield Corporation's voting common stock. Garfield's buildings and equipment had a book value of $300,000 and a fair value of $350,000 at the time of acquisition.
-Based on the preceding information,what will be the amount at which Garfield's buildings and equipment will be reported in consolidated statements using the parent company approach?

• A) $350,000
• B) $340,000
• C) $280,000
• D) $300,000

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Definitions:

Watson

Refers to John B. Watson, an American psychologist who is considered one of the founders of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and feelings.

Humanistic Psychology

Historically significant perspective that emphasized the growth potential of healthy people and the individual’s potential for personal growth.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing the importance of free will, self-actualization, and empathy in personal development.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.