Assume That Apples Cost $0

question 33

Multiple Choice

Assume that apples cost $0.50 in 2012 and $1 in 2019, whereas oranges cost $1 in 2012 and $1.50 in 2019. If 4 apples were produced in 2012 and 5 in 2019, whereas 3 oranges were produced in 2012 and 5 in 2019, then the GDP deflator in 2019, using a base year of 2012, was approximately:

• A)1.5.
• B)1.7.
• C)1.9.
• D)2.0.

Calculate the net book value of assets sold between parent and subsidiary and their effect on consolidated financial statements.

Determine the allocation and recognition of non-controlling interest (NCI) in consolidated financial statements.

Apply the concept of unrealized profit or loss elimination in intercompany transactions.

Identify and calculate goodwill and non-controlling interest amounts under different accounting methods.

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Definitions:

Pyloric

Pertaining to the region of the stomach that connects to the duodenum, involved in the regulation of gastric emptying.

Celiac Disease

An autoimmune disorder where the ingestion of gluten leads to damage in the small intestine, impairing nutrient absorption.

Villi

Small finger-like projections that line the intestine, increasing its surface area for absorption of nutrients from digested food.

Lingual Lipase

An enzyme secreted by the glands in the tongue that begins the digestion of lipids (fats) in the mouth.