When a parent company owns 100 percent of the outstanding stock of a subsidiary, Goodwill from Consolidation will appear on the consolidated balance sheet when the
a. cost of the parent's investment exceeds the book value and the fair value of the investee's net identifiable assets.
b. cost of the parent's investment exceeds the book value of the parent's net assets.
c. book value of the parent's net assets exceeds the fair value of the parent's net assets.
d. fair value of the investee's net identifiable assets exceeds the cost of the parent's investment.
A
Business
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A company produced $300 million in earnings. If it has 50 million shares outstanding and is trading with a P-e ratio of 12.5, its price-per-share is:
a) 72.5 b) 75 c) 60 d) 62.5
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By regulation, the payments on an annuity contract must stop when the annuity holder dies.
a. true b. false
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