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

question 29

Multiple Choice

Use the following information to answer the question(s) below.
Paris Corporation purchased 80% of the outstanding voting common stock of Sanders Corporation on January 1,2011,at a cost of $400,000.The stockholders' equity of Sanders Corporation on this date consisted of $200,000 of Capital Stock and $100,000 of Retained Earnings.Book values were equal to fair values except for land and inventory.The book value of Sanders' land was $10,000,and fair value was $22,000.The book value of Sanders' inventory was $30,000,and fair value was $25,000.
-Under the parent company theory,what amount of goodwill was reported on the consolidated balance sheet at December 31,2011?

• A)$148,000
• B)$153,000
• C)$154,400
• D)$160,000

---

Definitions:

Icon Sets

Collections of visually cohesive symbols or images used in software applications to enhance user navigation and interface aesthetics.

Color Scales

A data visualization tool that uses a range of colors to represent different values in a dataset.

Sizing Handle

A graphical control element within a user interface that allows users to resize objects or windows by dragging.

Increase Width

To make an object or element broader or wider in size.