Find Corp and Has Elected to Use Proportionate Consolidation Method

question 25

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 deferred taxes that would appear on Seek's Consolidated Balance Sheet as at December 31, 2013?

• A) $800
• B) $1,200
• C) $6,000
• D) $8,000

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Definitions:

International Trade

International Trade involves the exchange of goods and services across international boundaries, driven by the principles of comparative advantage and market demand.

Tariffs

Taxes imposed by a government on imported goods.

Comparative Advantage

The capacity of a nation or company to generate a specific product or service with a smaller opportunity cost compared to its rivals.

Quotas

Limits set by governments on the quantity of a product that can be imported or exported within a given time period.