Answer:
Consolidated income: 954,800 dollars
Explanation:
Gallow income x race participation:
$ 204,000 x 80% = $ 163,200
The gross profit in the infra-entity transaction will be eliminated
$ 450,000 - $ 330,000 = $ 120,000 gross profit
15% remains at Gallow so: $ 120,000 x 15% = $ 18,000 gross profit for the unsold inventory.
We now multiply by Race participation: $ 18,000 x 80% = $ 14,400 unrealized gain.
Consolidated income:
Race income: 806,000
Gallo income 163, 200
unrealized gain (14, 400)
Total: 954,800
Answer: 1. D. Economic entity
2. C. Circumstances prevent the exercise of control.
3. B. Consolidation used for both Sell and Vane.
4. B. In form, the companies are separate; in substance, they are one entity
Explanation:
1. When a parent–subsidiary relationship exists, it can be infered that consolidated financial statements will be prepared in recognition of the accounting concept of economic entity.
2. Consolidated financial statements are prepared when one company has a controlling interest in another unless the circumstances prevent the exercise of control.
3. Based on the information given, in Penn’s consolidated financial statements, it should be noted that Sell and Vane should be consolidated. Therefore, the correct option is B.
4. The best theoretical justification for consolidated financial statements is that in form, the companies are separate while in substance, they are regarded as one entity.
I would go with D because it makes more sense
<span>Political Socialization The induction of individuals into the political culture; learning the underlying beliefs and values on which the political system is based. gener gap A distinctive pattern of voting behavior reflecting the differences in views between women and men.Democracy the opportunity to take part in the nation's governmental and policy making processes and to have some say in determining how he or she is governed, including the right to vote in elections.</span>
