On Jan. 1, Stanton Co buys 10% of the outstanding shares of its parent, ProMart Inc. Although the total book and fair values of ProMart's net assets equaled $4 million, the price paid for these shares was $420,000. During the year, ProMart reported $510,000 of separate operating income (no subsidiary income was included) and declared dividends of $140,000. How are the shares of the parent owned by the subsidiary reported at Dec. 31?
A) an investment balance of $457,000 is eliminated for consolidation purposes
B) consolidated stockholders' equity is reduced by $457,000
C) an investment balance of $437,000 is eliminated for consolidation purposes
D) consolidated stockholders' equity is reduced by $420,000
Answer: D) consolidated stockholders' equity is reduced by $420,000
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a. true b. false
A company that sells an online course aimed at helping high-school students improve their SAT scores has claimed that SAT scores will improve by more than 90 points on average if students successfully complete the course
To test this, a national school counseling organization plans to select a random sample of n = 100 students who have previously taken the SAT test. These students will take the company's course and then retake the SAT test. Assuming that the population standard deviation for improvement in test scores is thought to be 30 points and the level of significance for the hypothesis test is 0.05, what is the probability that the counseling organization will incorrectly "accept" the null hypothesis when, in fact, the true mean increase is actually 95 points?A) Approximately 0.508 B) About 0.492 C) Approximately 0.008 D) Can't be determined without knowing the sample results.