The Following Data Pertains to Questions

question 49

Multiple Choice

The following data pertains to questions
Parent and Sub Inc had the following balance sheets on July 31,2007: The Net Incomes for Parent and Sub Inc for the year ended July 31,2007 were $120,000 and $60,000 respectively.
-Assuming that Parent Company purchased 80% of Sub Inc.for $180,000,the Liabilities section (including Non-Controlling Interest) of Parent's Consolidated Balance Sheet on the date of acquisition would total what amount under current GAAP?

• A)$400,000
• B)$473,200
• C)$499,200
• D)$477,200

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Definitions:

Restructuring

The process of organizing a company or its operations differently to increase efficiency or improve profitability, often involving changes in business model, operations, or staff.

Historical Pattern

Trends or sequences in data that have been observed to repeat over historical periods, often used for forecasting and analysis.

Warranty Claims

Requests made by customers for the repair or replacement of products under the terms of a warranty agreement.

AASB 137

The Australian Accounting Standards Board standard that deals with Provisions, Contingent Liabilities, and Contingent Assets.