On January 1,2012,Preview Company Acquired All of the Stock of a Subsidiary.The

question 43

Multiple Choice

On January 1,2012,Preview Company acquired all of the stock of a subsidiary.The following data is available:
$\begin{array}{lll}& \text { Preview Company} & \text { Subsidiary } \\\text { Total assets } & \$ 650 & \$ 400 \\\text { Total liabilities } & \$ 200 & \$ 190 \\\text { Total stockholders' equity }& \$ 450 & \$ 210\end{array}$
The acquisition by the Preview Company represents a 100 percent interest in the subsidiary.On January 1,2012,the fair value of the subsidiary's assets and liabilities are equal to the book value.Preview Company paid $250 for the 100 percent interest in the subsidiary.On January 1,2012,what are the total assets on the consolidated balance sheet? (Assume elimination entries are completed.)

• A) $650
• B) $800
• C) $840
• D) $1,050

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Definitions:

Deficit Theory

A theory suggesting that societal inequalities and individual failures result from deficiencies in cultural, social, or intellectual capacity.

Cultural Inferiority Theory

A theory suggesting that some cultures are inferior to others, often used historically to justify colonization and oppression.

Ethnically Diverse Groups

Collections of individuals from various ethnic backgrounds, emphasizing a mix of cultural identities, languages, and traditions within a group.

Microaggression

Subtle, often unintentional, actions or comments that indirectly, and sometimes unconsciously, express prejudice against marginalized groups.