Find Corp and Has Elected to Use Proportionate Consolidation Method

question 9

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 miscellaneous liabilities that would appear on Seek's December 31, 2013 Consolidated Balance Sheet?

• A) $166,000
• B) $176,000
• C) $230,000
• D) $240,000

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Definitions:

Market Risk Premium

The additional return that an investor requires for choosing a risky market investment over a risk-free investment.

Beta

A measure of a stock's volatility in relation to the overall market, used to gauge the risk associated with a particular investment.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating its risk level.

Market

An area or arena in which commercial dealings are conducted, often defined by the exchange of goods, services, or information between buyers and sellers.