Cinema Company Acquired 70 Percent of Movie Corporation's Shares on December

question 13

Multiple Choice

Cinema Company acquired 70 percent of Movie Corporation's shares on December 31,20X5,at underlying book value of $98,000.At that date,the fair value of the noncontrolling interest was equal to 30 percent of the book value of Movie Corporation.Movie's balance sheet on January 1,20X8,contained the following balances:
On January 1,20X8,Movie acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.

-Based on the preceding information,the eliminating entry needed in preparing a consolidated balance sheet immediately following the acquisition of shares will include:

• A)a credit to NCI in NA of Movie Corp.for $19,375.
• B)a credit to Additional Paid-In Capital for $75,000.
• C)a debit to Treasury Shares for $30,000.
• D)a credit to Investment in Movie stock for $6,125.

Recognize the impact of agriculture, pastoralism, and industrial revolution on societal organization and labor.

Describe different forms of land ownership and economic systems within indigenous and traditional communities.

Analyze the influence of external economic activities like ecotourism on indigenous communities.

Understand the concepts of social prestige and leadership through economic distribution practices.

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Definitions:

Financial Assets

Any assets that are cash, an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.

IFRS

International Financial Reporting Standards are a set of accounting rules and standards for financial statement preparation, recognized globally.

Noncontrolling Interest

A share in the equity of a subsidiary not held by the parent company, reflecting outside ownership's share of the subsidiaries' net assets.

Book Value

The net value of a company's assets minus its liabilities and preferred stock, representing the shareholders' equity portion of balance sheet.