The Following Information Applies to Questions 21-26

question 37

Multiple Choice

The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.

-Based on the information given,what percentage of Y Company's shares were acquired by X Company?

• A) 100 percent
• B) 60 percent
• C) 80 percent
• D) 75 percent

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Definitions:

Liabilities

Financial obligations or debts that a business owes to others, which must be settled over time through the transfer of economic benefits.

Capitals

Financial assets or the financial value of assets, such as cash and securities, owned by a business.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Supplies

Materials or items which are used in the operation of a business or needed in the production process.