Exhibit 13-2 on January 1, 2014, the Cluzt Company Purchased

question 78

Multiple Choice

Exhibit 13-2 On January 1, 2014, the Cluzt Company purchased 30% of the 1,000,000 shares of Nancy's common stock for $15,000,000 when 30% of Nancy's net assets totaled $12,000,000. The excess purchase price over the underlying assets was attributable to undervalued depreciable plant assets with a remaining useful life of ten years. Nancy reported net income of $8,000,000 and paid cash dividends of $2,000,000 during 2014.
-Refer to Exhibit 13-2. The investment in Nancy Company stock should be reported on Clutz's December 31, 2014, balance sheet at

• A) $15,000,000
• B) $15,600,000
• C) $16,500,000
• D) $17,400,000

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Definitions:

Median

A statistical measure representing the middle value in a set of data, where half the numbers are above and half are below.

Mean

The average value of a group of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Frequency Distribution

a representation, often in the form of a table, that shows the number of observations within a particular range of values, used in statistics to summarize data sets.

Data Set

A collection of related sets of information that consists of separate elements but can be manipulated as a unit by a computer.