What Amount Should Have Been Reported for the Land on a Consolidated

question 18

Multiple Choice

What amount should have been reported for the land on a consolidated balance sheet,assuming the investment was obtained prior to SFAS 141(R) and the purchase method,parent company concept,was used?

• A)$70,000
• B)$75,000
• C)$85,000
• D)$92,500
• E)$100,000

---

Definitions:

Taxes

Mandatory fiscal contributions or other forms of levies required from taxpayers by governmental bodies to support government expenditures and diverse public costs.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Excise Tax

A tax levied on the manufacture, sale, or consumption of certain products or activities, often specific to certain goods like tobacco, alcohol, and fuel.

Deadweight Loss

The loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.