King Corp Owns 80% of Kong Corp

question 7

Multiple Choice

King Corp. owns 80% of Kong Corp. and uses the cost method to account for its investment, chapter) Corp. for the Year ended December 31, 2012 are shown below: Other Information: ▪King sold a tract of Land to Kong at a profit of $10,000 during 2012. This land is still the property of Kong Corp.
▪On January 1, 2012, Kong sold equipment to King at a price that was $20,000 higher than its book value. The equipment had a remaining useful life of 4 years from that date.
▪On January 1, 2012, King's inventories contained items purchased from Kong for $10,000. This entire inventory was sold to outsiders during the year. Also during 2012, King sold Inventory to Kong for $50,000. Half this inventory is still in Kong's warehouse at year end. All sales are priced at a 25% mark-up above cost, regardless of whether the sales are internal or external.
▪Kong's Retained Earnings on the date of acquisition amounted to $350,000. There have been no changes to the company's common shares account.
▪Kong's book values did not differ materially from its fair values on the date of acquisition with the following exceptions:
▪Inventory had a Fair value that was $20,000 higher than its book value. This inventory was sold to outsiders during 2012.
▪A Patent (which had not previously been accounted for) was identified on the acquisition date with an estimated fair value of $15,000. The patent had an estimated useful life of 3 years.
▪There was a goodwill impairment loss of $4,000 during 2012.
▪Both companies are subject to an effective tax rate of 40%.
▪Both companies use straight line amortization. What would be the amount appearing on the December 31, 2012 Consolidated Income Statement for cost of goods sold?

• A) $640,000.
• B) $593,000.
• C) $590,000.
• D) $400,000.

Recognize the role of competition for resources in initiating and perpetuating intergroup conflict.

Distinguish between various psychological biases and errors that exacerbate intergroup conflicts.

Comprehend the impact of group dynamics on individual behavior in conflict situations.

Identify factors that can either reduce or intensify intergroup conflicts.

---

Definitions:

Technology Users

Individuals or groups who use technology tools, platforms, and systems to accomplish specific tasks or for entertainment.

Netiquette

Guidelines and best practices for respectful and effective communication on the Internet.

Digital Footprint

The record or trail left by the activities a person undertakes online, including websites visited and emails sent.

Current Law

The body of existing statutes, regulations, and case law as recognized by a legal jurisdiction at the current time.