Use the Following Information for Questions

question 60

Multiple Choice

Use the following information for questions
Caraway Corporation earns $120,000 and pays cash dividends of $40,000 during 2011.Macoon Corporation owns 3,000 of the 10,000 outstanding shares of Caraway and exercises significant influence.
-What amount should Macoon show in the investment account at December 31, 2011 if the beginning of the year balance in the account was $160,000?

• A)$184,000.
• B)$196,000.
• C)$160,000.
• D)$240,000.

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Definitions:

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, calculated to evaluate stock levels and assess cost of goods sold.

Consignor

The party in a consignment agreement that provides goods to another party (consignee) to sell on their behalf, retaining ownership until the goods are sold.

Consignee

The individual or entity to whom goods are shipped and who is responsible for receiving the shipment and completing any customs paperwork.

Ending Inventory

The value of goods that remain unsold at the end of an accounting period.