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:

G₁ Phase

The first of four phases of the cell cycle in which the cell grows in size and synthesizes mRNA and proteins in preparation for subsequent steps leading to mitosis.

G₂ Phase

A phase of the cell cycle following DNA synthesis (S phase) and preceding mitosis (M phase), during which cells prepare for division and undergo growth and protein synthesis.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of four genetically distinct haploid cells.

Gametes

the male and female sex cells (sperm and eggs respectively) that unite during fertilization to form a new organism.