On January 1,2004,Plimsol Company Acquired 100 Percent of Shipping Corporation's

question 38

Multiple Choice

On January 1,2004,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol uses the cost method in accounting for its investment in Shipping.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,2004,the trial balance data for the two companies are as follows:

-Based on the information provided,what amount of total stockholder's equity will be reported in the consolidated balance sheet prepared on December 31,2004?

• A)$190,000
• B)$335,000
• C)$460,000
• D)$310,000

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Definitions:

Organizational Mission

The fundamental purpose or goal that guides an organization, describing what it seeks to achieve and who it serves.

Internal Control

Internal control comprises the rules, policies, and procedures an organization implements to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature in the workplace or learning environments.

Bureaucratic Control

A system of managing an organization through strict policies, procedures, and hierarchy, emphasizing adherence to rules and formal authority.