512) Find Corp and Has Elected to Use Proportionate Consolidation

question 47

Multiple Choice

512) 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 intercompany pre-tax profits in ending inventory?

• A) $3,000
• B) $15,000
• C) $20,000
• D) $30,000

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Definitions:

Collecting Ducts

Channels within the kidneys that receive urine from the nephrons and transport it into the renal pelvis and ureters.

White Pulp

Lymphatic tissue within the spleen that functions in the immune response by producing and storing white blood cells.

Red Pulp

A component of the spleen involved in filtering blood, removing old and damaged red blood cells, and storing platelets.

Lymphocytes

Lymphocytes are a type of white blood cell that plays a crucial role in the immune system, helping to protect the body against infection and disease.