Lea Company Acquired All of Tenzing Corporation's Stock on January

question 59

Multiple Choice

Lea Company acquired all of Tenzing Corporation's stock on January 1, 20X6 for $150,000 cash. On December 31, 20X8, the trial balances of the two companies were as follows:
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition. At December 31, 20X8, Tenzing owed Lea $4,000 for services provided.

-Based on the preceding information,all of the following are consolidating entries required on December 31,20X8,to prepare consolidated financial statements,except:

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Revictimization

The phenomenon where an individual who has experienced victimization once suffers additional episodes, further exacerbating their vulnerability.

Depression

A mental health disorder marked by persistent feelings of sadness, loss of interest, and a lack of energy.

Negative Self-Concept

The perception of oneself in a negative light, often marked by feelings of inadequacy, unworthiness, or lack of self-esteem.

Sexual Harassment

A form of discrimination involving unwelcome sexual advances or conduct, creating a hostile or offensive environment.