If the Shareholders' Equity Allocated to the Subsidiary's Preference Shares

question 61

Multiple Choice

If the shareholders' equity allocated to the subsidiary's preference shares amounts to $240,000 and the parent company acquires 60% of the subsidiary's preference shares at a cost of $150,000, what effect will the transaction have on consolidated shareholders' equity?

• A) Non-controlling interest will decrease by $144,000 and retained earnings will decrease by $6,000.
• B) Non-controlling interest will decrease by $144,000 and contributed surplus will increase by $6,000.
• C) Non-controlling interest will increase by $144,000 and retained earnings will increase by $6,000.
• D) There will be no change in consolidated shareholders' equity as a result of this transaction.

Understand the fundamental principles and concepts of Skinner's behaviorism, including operant conditioning.

Identify the differences between Skinner's research approach and those of other personality theorists.

Recognize the methodologies used by Skinner for obtaining data and his views on statistical analysis.

Distinguish between positive and negative reinforcement, and understand their effectiveness in behavior modification.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the total amount they actually pay.

Surplus I

A situation where the quantity supplied of a product exceeds the quantity demanded at the current price.

Consumer Surplus

The gap reflecting the difference between what consumers plan to pay for a good or service and what they pay in practice.

Surplus III

Excess of production or supply over demand in a market, leading to potential price reductions to clear the surplus stock.