What Would Be the Amount of the Non-Controlling Interest Appearing

question 14

Multiple Choice

What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2018 before the issue of shares to Chompster?

• A) $125,000.
• B) $160,000.
• C) $222,000.
• D)$264,000.

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Definitions:

Voluntary Liquidation

The process in which a company's directors choose to voluntarily wind up the company's affairs, distribute its assets to creditors, and officially dissolve the business.

Liquidation Preference

A term in financial agreements that specifies the order in which creditors and investors are paid in the event of a company's liquidation.

Judicial Dissolution

A legal process through which a court orders the dissolution or termination of an entity such as a corporation or partnership based on certain grounds laid by law.

Deadlocked Directors

A situation in a board of directors where members are evenly divided on an issue, preventing a decision from being made.