On January 1,20X6,Power Company Acquired 80 Percent of Strong Company's

question 20

Multiple Choice

On January 1,20X6,Power Company acquired 80 percent of Strong Company's outstanding stock for cash.The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the date of acquisition.Selected balance sheet data at December 31,20X6 are as follows:

-Based on the preceding information,what amount will Power Company report as common stock outstanding in its consolidated balance sheet at December 31,20X6?

• A)$214,000
• B)$150,000
• C)$184,000
• D)$230,000

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Definitions:

Tuna Fish Sandwiches

A type of sandwich made typically from canned tuna mixed with mayonnaise and other ingredients.

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, inversely related to that of 'normal goods'.

Quantity Demanded

The sum total of a good or service consumers are ready and able to buy at a certain price point.

Movement Along

Describes the change in quantity demanded or supplied of a good in response to a change in price, as shown on a graph.