The Following Information Pertains to Questions

question 32

Multiple Choice

The following information pertains to questions
Whine purchased 80% of the outstanding voting shares of Dine Inc.on December 31,2009.The Balance Sheets of both companies on that date are shown below: Chompster Inc. ,one of Whine's main competitors has agreed to acquire an equity interest in Dine Inc.As a result of the agreement,Dine Inc.would issue another 8,000 shares (over and above the 32,000 shares it currently has outstanding) to Chompster for $20 per share.
The acquisition differential on the date of acquisition was attributed entirely to equipment which had a remaining useful life of ten years from the date of acquisition.
Whine Inc.uses the equity method to account for its investment in Dine Inc.There were no unrealized intercompany profits on December 31,2009.
-The amount of retained earnings appearing on the December 31,2009 Consolidated Balance Sheet would be:

• A)$400,000
• B)$416,000
• C)$384,000
• D)$396,000

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Definitions:

Trigger

An external event or circumstance that initiates a response or reaction, often used in the context of psychological stimuli.

Retrieval Cue

Stimuli or prompts that aid in the recall of information stored in long-term memory.

Babysitter

An individual who temporarily cares for children on behalf of the children's parents or guardians.

Retrieval

Accessing and bringing to awareness the information held in memory.