Find Corp and Has Elected to Use Proportionate Consolidation Method

question 51

Multiple Choice

Find Corp and has elected to use proportionate consolidation method to report its investment in Find Corp. for 2013. Both companies are subject to 40% tax rate. What is the total amount of miscellaneous assets that would appear on Seek's Consolidated Balance Sheet as at December 31, 2013?

• A) $650,000
• B) $660,000
• C) $840,000
• D) $900,000

---

Definitions:

Accounts Receivable Period

measures the average number of days it takes a company to collect payment after a sale has been made, indicating the efficiency of its credit policies.

Cost of Goods Sold

Represents the total cost directly tied to the production or acquisition of the goods sold by a company during a specific period.

Sales

The activities involved in selling goods or services in return for money or other compensation, serving as a primary revenue source for businesses.