Uchimura Corporation Has Two Divisions: the AFE Division and the GBI

question 122

Multiple Choice

Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $42,000. The AFE Division's divisional segment margin is $15,700 and the GBI Division's divisional segment margin is $175,400. What is the amount of the common fixed expense not traceable to the individual divisions?

• A) $149,100
• B) $57,700
• C) $217,400
• D) $191,100

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Definitions:

Consolidation Entries

Journal entries made in the preparation of consolidated financial statements to adjust for inter-company transactions and balances.

Cash Position

A company’s total cash and cash equivalents, representing its liquidity and ability to meet short-term obligations and invest in opportunities.

Tax Effects

Tax effects are the impact of tax laws and policies on an individual's or company's financial situation, including how taxes influence investment returns, net income, and economic decisions.

Accrued Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting system.