On January 1,20X9,Pirate Corporation Acquired 80 Percent of Sea-Gull Company's

question 9

Multiple Choice

On January 1,20X9,Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash.The fair value of the noncontrolling interest at that date was determined to be $40,000.Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
At the date of the business combination,the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory,which had a fair value of $45,000,and land,which had a fair value of $60,000.
-Based on the preceding information,what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination?

• A)$720,000
• B)$840,000
• C)$825,000
• D)$865,000

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Definitions:

Categorical Syllogism

A form of reasoning where two premises lead to a conclusion, based on relationships between categories or groups.

Standard Form

A way of arranging the premises and conclusion of an argument to clearly show the logical structure.

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as a link between the other terms.

Minor Premise

Minor Premise is the second premise in a syllogism, which contains the terms minor term and middle term, leading to a specific conclusion.