Find Corp Is a Joint Operation in Which Seek Inc

question 1

Multiple Choice

Find Corp. is a joint operation in which Seek Inc. has a 20% interest. Seek reports its investment in Find using proportionately adjusted financial statements. A contractual agreement gives Seek proportionate rights (20%) to all of Finds' assets and proportionate responsibilities (20%) for all of Find's liabilities. Seek uses the equity method to record its investment but has yet to make any journal entries related to its investment in Find for 2020. The financial statements of both companies as at December 31, 2020, are shown below.
$\begin{array}{|l|r|r|}\hline & \text { Seek Inc. } & \text { Find Corp. } \\\hline \text { INCOME STATEMENTS } & & \\\hline \text { Sales } & \$ 800,000 & \$ 200,000 \\\hline \text { Cost of Sales } & \$ 400,000 & \$ 100,000 \\\hline \text { Other Expenses } & \$ 200,000 & \$ 60,000 \\\hline \text { Net Income } & \$ 200,000 & \$ 40,000 \\\hline \text { BALANCE SHEETS } & & \\\hline \text { Miscellaneous Assets } & \$ 600,000 & \$ 300,000 \\\hline \text { Inventory } & \$ 120,000 & \$ 60,000 \\\hline \text { Investment in Find } & \$ 180,000 & \\\hline \text { Total Assets } & \$ 900,000 & \$ \mathbf{3 6 0 , 0 0 0} \\\hline \text { Miscellaneous Liabilities } & \$ 160,000 & \$ 80,000 \\\hline \text { Common Shares } & \$ 200,000 & \$ 100,000 \\\hline \text { Retained Earnings, Jan 1 } & \$ 340,000 & \$ 140,000 \\\hline \text { Net Income } & \$ 200,000 & \$ 40,000 \\\hline \text { Total Liabilities \& Equity } & \$ 900,000 & \$ 360,000 \\\hline\end{array}$ During 2020, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales. At the end of 2020, Find's inventory contained $30,000 worth of merchandise purchased from Seek. Find also owed $50,000 to Seek at the end of 2020.
Both companies are subject to a 40% tax rate.
What is the total amount of deferred taxes that would appear on Seek's Consolidated Balance Sheet as at December 31, 2020?

• A) $800
• B) $1,200
• C) $6,000
• D) $8,000

Identify strategies and practices for improving memory and avoiding forgetting.

Understand the role of internal and external cues in memory retrieval.

Comprehend the nature of anterograde and retrograde amnesia, and the effects of disease on memory.

Grasp the impact of hindsight bias and misinformation on memory reconstruction.

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Definitions:

Superego

In Freudian psychoanalysis, a component of the psyche that operates as the ethical component of personality, providing moral standards and aspirations.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Ego

The part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.

Erogenous Zones

Areas of the body that are particularly sensitive to sexual stimulation.