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:

Motivation

The psychological processes that arouse and direct goal-directed behavior.

Work

A physical or mental effort done in order to achieve a purpose or result, often associated with employment or tasks.

Telecommuting

A work arrangement in which employees do not commute to a central place of work, instead working via electronic communications from a different location, often their home.

Advantages

The favorable factors or benefits that contribute to achieving success or a superior position.