Find Corp and Has Elected to Use Proportionate Consolidation Method

question 27

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 cost of sales that would appear on the Consolidated Income Statement?

• A) $396,000
• B) $399,000
• C) $420,000
• D) $500,000

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Definitions:

AIDS

Acquired Immunodeficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), leading to a severely weakened immune system.

Lymphocytes

White blood cells that are integral to the body's immune system, helping to fight off infections.

Plasma

The liquid component of blood where cells like red blood cells, white blood cells, and platelets are suspended.

Blood

A vital fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.