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:

Tone Sensitivity

The ability to distinguish different frequencies of sound or musical notes.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time.

Difference Threshold

The minimum difference between two stimuli required for detection 50 percent of the time. We experience the difference threshold as a just noticeable difference (or jnd).

Guitar

A stringed musical instrument with a long fretted neck, a flat wooden soundboard, and typically six strings, which are plucked or strummed.