When Jolt Co

question 97

Multiple Choice

When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000.
-What amount should have been reported for the land in a consolidated balance sheet, assuming the investment was obtained prior to January 1, 2009 and the purchase method of accounting for business combinations was used?

• A) $70,000.
• B) $75,000.
• C) $85,000.
• D) $92,500.
• E) $100,000.

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Definitions:

Cystic Duct

A small duct that connects the gallbladder to the common bile duct, allowing bile to flow into and out of the gallbladder.

Pancreatic Duct

A duct connecting the pancreas to the common bile duct to supply pancreatic juices containing digestive enzymes to the small intestine.

Parotid Duct

A tube that transports saliva from the parotid gland into the mouth, helping with digestion.

Adrenal Glands

Adrenal glands are small, triangular glands located on top of both kidneys that produce hormones like cortisol and adrenaline which help control heart rate, blood pressure, and other important bodily functions.