Wheat Corporation Pays $532,000 for 100,000 Shares to Acquire 45

question 91

Multiple Choice

Wheat Corporation pays $532,000 for 100,000 shares to acquire 45% common stock of Grain Investments,Inc.on January 5,2018.Wheat Corporation sells 20,000 shares for $40,000 on January 6,2018.Which of the following is the correct journal entry for the transaction on January 6,2018? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 106,400 & \\
• \hline \text { Equity Investments-Grain Investments, Inc. } & & 106,400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Equity Investments-Grain Investments, Inc. } & 106,400 & \\
• \hline \text { Cash } & & 40,000 \\
• \hline \text { Loss on Disposal } & & 66,400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Equity Investments-Grain Investments, Inc. } & 106,400 & \\
• \hline \text { Cash } & & 106,400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 40,000 & \\
• \hline \text { Loss on Disposal } & 66,400 & \\
• \hline \text { Equity Investments-Grain Investments, Inc. } & & 106,400 \\
• \hline
• \end{array}\]

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Definitions:

Confidence Interval

A breadth of outcomes, sourced from sample-derived statistics, expected to surround the unknown figure of a population characteristic.

Population Mean

The average value of all individuals or items in a defined population.

Confidence Coefficient

The probability level associated with a confidence interval, indicating the frequency with which an estimated interval would include the parameter if the experiment were repeated.

T Value

A value computed from a sample data used in a t-test in statistics that measures the size of the difference relative to the variation in your sample data.