Use the Following Information to Answer the Question(s)below

question 15

Multiple Choice

Use the following information to answer the question(s) below.
Pascoe Corporation paid $450,000 for a 90% interest in Sarabet Corporation on January 1,2011,when Sarabet's stockholders' equity consisted of $250,000 Common Stock and $50,000 Retained Earnings.The book values and fair values of Sarabet's assets and liabilities were equal when Pascoe acquired its interest.
The separate net incomes (excluding investment income) of Pascoe and Sarabet for 2011 were $600,000 and $100,000,respectively.Dividends declared and paid during 2011 were $250,000 for Pascoe and $50,000 for Sarabet.Pascoe uses the entity theory in consolidating its financial statements with those of Sarabet.
-Goodwill was reported in the December 31,2011 consolidated balance sheet at

• A)$170,000.
• B)$180,000.
• C)$200,000.
• D)$210,000.

Understand the structure and purposes of different types of reports.

Recognize the components and content of formal and informal reports.

Identify the appropriate use of direct and indirect order in report writing.

Acknowledge the role of executive summaries and their content.

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Definitions:

Metastases

The spread and invasion of cancer cells to other organs or tissues. When this happens, the disease is said to have metastasized.

Malignancy

A term used to describe cells or tumors that are cancerous and have the ability to grow uncontrollably and spread to other parts of the body.

Benign

Refers to a condition, tumor, or growth that is not cancerous and does not spread to other parts of the body.

Cigarette Smoking

The act of inhaling and exhaling the smoke of burning tobacco, typically contained in cigarettes, which is a major risk factor for numerous health issues.