In Order to Reduce the Risk Associated with a New

question 26

Multiple Choice

In order to reduce the risk associated with a new line of business, Conservative Corporation established Spin Company as a wholly owned subsidiary. It transferred assets and accounts payable to Spin in exchange for its common stock. Spin recorded the following entry when the transaction occurred:

-Based on the preceding information,what was Conservative's book value of assets transferred to Spin Company?

• A) $243,000
• B) $263,000
• C) $221,000
• D) $201,000

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Definitions:

Critical Business Information

Vital data that is essential for the operation and competitiveness of a company.

Affinity Portal

A website that offers a single point of entry to an entire community of affiliated interests.

Corporate Portal

A web-based platform that provides employees with access to company information and internal resources.

Intranet

A private network accessible only to an organization's staff, often used to share company information and computing resources within the organization securely.