Patti Corp

question 23

Multiple Choice

Patti Corp. has several subsidiaries (Aeta, Beta, and Gaeta) that are included in its consolidated financial statements. In its 12/31/X1 separate balance sheet, Patti had the following intercompany balances before eliminations: In its 12/31/X1 consolidated balance sheet, what amount should Patti report as intercompany receivables?

• A)$166,000
• B)$51,000
• C)$26,000
• D)$0

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Definitions:

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Damaged Goods

Merchandise that is broken, defective, or otherwise impaired, reducing its value or utility.

Higher Limits

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Economical Premium

A cost-effective insurance payment that provides coverage at a low rate.