Partridge Purchased a 60% Interest in Sparrow on January 1

question 39

Multiple Choice

Partridge purchased a 60% interest in Sparrow on January 1, 20X1, for $240,000. At the time of the purchase, Sparrow had the following stockholders' equity: Any excess is attributable to goodwill. On January 1, 20X6, the retained earnings of Sparrow was $175,000. The entire investment was sold for $300,000 on January 1, 20X6. At that date, Partridge had on hand inventory it had purchased from Sparrow for $50,000. Sparrow has a gross profit percentage of 40%. The gain (loss) was ____.

• A)$105,000
• B)$81,000
• C)$27,000
• D)$39,000

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Definitions:

First Sexual Intercourse

The initial experience of engaging in sexual activity, which is a significant event in an individual's sexual and psychological development.

Evolutionary Theory

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Reproductively Advantageous

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