Refer to the Information Provided in Scenario 21

question 62

Multiple Choice

Refer to the information provided in Scenario 21.3 below to answer the questions that follow.
SCENARIO 21.3: Consider a local high school that has 300 sophomores considered to be at-risk students. A privately-sponsored after-school sports program has been established to try to help at-risk students succeed in finishing high school. The local government wants to know if this program reduces the students' probability of dropping out of high school before the end of their junior year, and decides to randomly sample 150 of the 300 at-risk sophomores and invite them to attend the after-school program at no cost. 100 students accept the invitation, and by the end of their junior year, the drop-out percentage of the 100 students who attended the program was lower than the drop-out percentage of the 200 students who did not attend the program.
-Refer to Scenario 21.3. The efficacy of this program can be best measured by comparing

• A) the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 200 students who did not attend the program.
• B) the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 50 students who were offered the program but chose not to attend.
• C) the drop-out percentage of the 150 students who were offered the program to the drop-out percentage of the 150 students who were not offered the program.
• D) the drop-out percentage of the 50 students were offered the program but chose not to attend to the drop-out percentage of the 150 students who were not offered the program.

Understand the determination of noncontrolling interest and its value at the date of acquisition.

Apply the acquisition method to calculate the amount of goodwill in business combinations.

Calculate income attributable to parent company shareholders from subsidiary operations.

Determine the impact of fair value adjustments on the carrying amount of acquired assets and goodwill.

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Definitions:

Property Rights

Legal rights to use, control, and derive benefit from a resource, property, or asset.

Overexploited Fisheries

Fisheries where fish stocks have declined below a level that can sustainably support fishing activity due to excessive fishing.

United Nations

An international organization formed in 1945 to promote peace, security, and cooperation among the world's nations.

Food and Agriculture Organization

An agency of the United Nations that leads international efforts to defeat hunger and improve nutrition and food security.