Plant Company Acquired All of Sprout Corporation's Stock on January

question 58

Multiple Choice

Plant Company acquired all of Sprout Corporation's stock on January 1,20X6 for $150,000 cash.On December 31,20X8,the trial balances of the two companies were as follows:
Sprout Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.At December 31,20X8,Sprout owed Plant $4,000 for services provided.
-Based on the preceding information,all of the following are consolidating entries required on December 31,20X8,to prepare consolidated financial statements,except:

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Whole Number Skills

The ability to use and understand integers (positive, negative, and zero) in arithmetic operations.

Metamemory

The awareness and understanding of one's own memory processes.

Chunking

A strategy for improving memory by breaking information down into smaller, more manageable units or groups, making it easier to process and remember.

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it in short-term memory or to encode it into long-term memory.