The Following Information Applies to Questions 21-26

question 37

Multiple Choice

The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.

-Based on the information given,what percentage of Y Company's shares were acquired by X Company?

• A) 100 percent
• B) 60 percent
• C) 80 percent
• D) 75 percent

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Definitions:

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aimed at facilitating free movement of goods, services, and people.

Executive Body

A group or committee with the authority to make decisions and govern within an organization, institution, or government.

Drafts Legislation

The process of creating and writing proposed laws for consideration by legislative bodies.

Foreign Direct Investment

Investments made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.