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

question 48

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 current accounting practice?

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

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Definitions:

Researcher's Hypothesis

A statement or prediction that a researcher sets out to test through experimental or observational study.

Cues

Signals or stimuli that trigger a reaction or encourage a specific response or behavior in humans or animals.

Natural Selection

The process whereby those members of a species that survive and reproduce most effectively are the ones that pass along their genes to future generations.

Evolutionary Theory

Theory of sexuality asserting that the sex drive has been shaped by natural selection and that its forms thus tend to be innate.