Company Y Purchases a Controlling Interest in Company Z on January

question 66

Multiple Choice

Company Y purchases a controlling interest in Company Z on January 1,2002.Which of the following would appear as the Shareholder Equity amount on Company Y's Consolidated Balance Sheet on the date of acquisition?

• A)Company Y's Shareholder Equity
• B)The sum of the Shareholder Equity of both companies.
• C)Company Y's Shareholder Equity as well as Company Y's proportional share of company Z's net assets at book value.
• D)Company Y's Shareholder Equity as well as Company Y's proportional share of company Z's net assets at Fair Market Value.

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