Find Corp and Has Elected to Use Proportionate Consolidation Method

question 13

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 sales that would appear on the Consolidated Income Statement?

• A) $816,000
• B) $880,000
• C) $920,000
• D) $1,000,000

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Definitions:

Necessary

Something that is required or essential to achieve a certain outcome or to maintain a condition.

Positive Light

Viewing situations, individuals, or concepts in an optimistic and favorable manner, focusing on strengths and potential for growth.

Defensive Behavior

Reactions aimed at protecting oneself from criticism, harm, or emotional discomfort.

Compassion

An emotional response that involves recognizing another's suffering and feeling motivated to alleviate it.