The Following Information Applies to Questions 21-26

question 9

Multiple Choice

The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.

-Rohan Corporation holds assets with a fair value of $150,000 and a book value of $125,000 and liabilities with a book value and fair value of $50,000.What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Helms Company pays $90,000 to acquire 75 percent ownership in Rohan and goodwill of $20,000 is reported?

• A) $50,000
• B) $30,000
• C) $40,000
• D) $20,000

---

Definitions:

Federal Spending

The total amount of money spent by the federal government of a country on various national programs, services, and obligations.

Health Care

The maintenance and improvement of physical and mental health through medical services.

Income Security

Financial protection against uncertainties causing loss of income, including programs like pensions, unemployment insurance, and social security.

National Defense

Government or collective actions and strategies intended to protect a country and its citizens from external threats and maintain territorial integrity and sovereignty.