The Following Information Applies to Questions 21-26

question 45

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,X Company and Y Company reported wages payable of

• A) $50,000 and $28,000 respectively.
• B) $60,000 and $32,000 respectively.
• C) $40,000 and $35,000 respectively.
• D) $28,000 and $60,000 respectively.

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Definitions:

Healthcare Index

A stock market index that measures the performance of the healthcare sector, including pharmaceuticals, hospitals, medical technology companies, etc.

Market Index

A statistical measure that represents the value of a section of the stock market, helping investors compare current price levels with past prices to calculate market performance.

Relative Strength

A momentum investing technique that compares the performance of a stock or security to the market or its peers.

Support Level

Support Level is a price level at which a security tends to stop falling because there is more demand than supply, potentially preventing the price from declining further.