Find Corp and Has Elected to Use Proportionate Consolidation Method

question 13

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 sales that would appear on the Consolidated Income Statement?

• A) $816,000
• B) $880,000
• C) $920,000
• D) $1,000,000

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Definitions:

Energy Intake

The amount of energy derived from foods and beverages consumed, measured in calories or joules.

Inappropriate Compensatory

Behaviors undertaken to undo or compensate for an undesirable action or thought, which may be maladaptive or harmful.

Binge Eating Disorder

An eating disorder characterized by recurrent episodes of eating large quantities of food (often very quickly and to the point of discomfort); a feeling of a loss of control during the binge; experiencing shame, distress or guilt afterwards; and not regularly using unhealthy compensatory measures (e.g., purging) to counter the binge eating.

Bulimia Nervosa

An eating disorder marked by binge eating followed by behaviors such as vomiting or excessive exercise to prevent weight gain.