On January 1,20X6,Pumpkin Corporation Acquired 70 Percent of Spice Company's

question 20

Multiple Choice

On January 1,20X6,Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash.The fair value of the noncontrolling interest at that date was determined to be $90,000.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 Spice's assets and liabilities approximated fair value except for inventory,which had a fair value of $30,000,and land,which had a fair value of $95,000.
-Based on the preceding information,what amount will be reported as total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination?

• A)$360,000
• B)$590,000
• C)$770,000
• D)$860,000

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Definitions:

Scale of Measurement

The method used to categorize and quantify variables in research, which determines the type of analytical technique that can be used on the data.

Ethnic Groups

Social groups that share a common and distinctive culture, religion, language, or the like.

Percentile

A statistical value that represents the position of a score in a distribution, showing the percentage of scores that fall below it.

Scale of Measurement

A system that specifies the nature of the relationship among values assigned to objects or individuals based on properties.