Princeton Company Acquired 75 Percent of the Common Stock of Sheffield

question 39

Multiple Choice

Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31,2009.On the date of acquisition,Princeton held land with a book value of $150,000 and a fair value of $300,000;Sheffield held land with a book value of $100,000 and fair value of $500,000.Using the entity theory,at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

• A)$650,000
• B)$500,000
• C)$550,000
• D)$375,000

---

Definitions:

Diagnosis

The identification of the nature of an illness or other problem by examination of the symptoms.

Aetiology

The study of the causes or origins of diseases or conditions, exploring how and why they occur.

Aetiology

The study of the causes or origins of diseases or disorders.

Diagnosis

The process of identifying a disease or condition through evaluation of patient history, examination, and review of laboratory data.