On January 3,20X9,Pleat Company Acquired 80 Percent of Stitch Corporation's

question 10

Multiple Choice

On January 3,20X9,Pleat Company acquired 80 percent of Stitch Corporation's common stock for $344,000 in cash.At the acquisition date,the book values and fair values of Stitch's assets and liabilities were equal,and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Stitch.The stockholders' equity accounts of the two companies at the acquisition date are:
Noncontrolling interest was assigned income of $11,000 in Pleat's consolidated income statement for 20X9.
-Based on the preceding information,what is the total stockholders' equity in the consolidated balance sheet as of January 3,20X9?

• A)$1,580,000
• B)$1,064,000
• C)$1,150,000
• D)$1,236,000

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Definitions:

Goal Incompatibility

A situation where the objectives of different individuals or groups are in conflict, leading to potential disputes or disagreements.

Third-Party Intervention

The involvement of an external entity in resolving disputes or facilitating negotiations between parties.

Arbitrator

A neutral third party who is appointed to make a decision in a dispute, typically binding, between two or more parties.

Process Control

Process control involves the use of systems and technologies to manage and regulate the operation of industrial processes to maintain desired outcomes.