Find Corp and Has Elected to Use Proportionate Consolidation Method

question 1

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 amount of Consolidated Net Income for 2013?

• A) $206,200
• B) $208,000
• C) $216,000
• D) ($218,000

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Definitions:

Hygiene Hypothesis

A theory suggesting that a lack of early childhood exposure to infectious agents, symbiotic microorganisms (such as those found in the gut), and parasites increases susceptibility to allergic diseases by suppressing the natural development of the immune system.

Immune Systems

The complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders (pathogens).

Reaction Time

The interval of time between the presentation of a stimulus and the initiation of the muscular response to that stimulus.

Stimulus Response

A concept in psychology that describes how an individual reacts to a stimulus; it's the basic unit of learning and behavior.