Anderson Company, a 90% Owned Subsidiary of Philbin Corporation, Transfers

question 37

Multiple Choice

Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Assume the equity method is used. The following data are available pertaining to Anderson's income and dividends.
Compute the equity in earnings of Anderson reported on Philbin's books for 2021.

• A)$76,500.
• B)$77,130.
• C)$75,870.
• D)$75,600.
• E)$75,800.

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Definitions:

Psychological Types

According to Carl Jung, these are distinct patterns of personality that arise from the interplay of conscious and unconscious dynamics, including attitudes (introversion/extraversion) and functions (thinking, feeling, sensing, and intuiting).

Disagreements

Occurrences of divergent views, opinions, or arguments between individuals or groups.

Sigmund Freud

A neurologist from Austria who established psychoanalysis as a method for addressing mental disorders through conversational therapy between a psychoanalyst and their patient.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts like the collective unconscious, archetypes, and psychological types.