Find Corp Is a Joint Operation in Which Seek Inc

question 5

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 miscellaneous assets that would appear on Seek's Proportionately Adjusted Balance Sheet as at December 31, 2020?

• A) $650,000
• B) $660,000
• C) $840,000
• D) $900,000

Relate specific behaviors and characteristics to corresponding psychoanalytic and psychosocial stages.

Analyze the effect of parental behavior on child development and attachment.

Explain the influence of social referencing on children's reactions and preferences.

Distinguish between the roles and interaction styles of mothers and fathers with their children.

---

Definitions:

Occupational Prestige

The collective societal respect, admiration, or regard given to certain professions or lines of work, often based on perceived skill level, education required, and social value.

Social Position

An individual's or group's status and role in society, determined by various factors such as occupation, class, gender, and ethnicity.

Double Shift

Refers to the phenomenon where individuals, especially women, work a paid job and then perform unpaid domestic work at home.

Soccer Practice

The scheduled training and preparation session for the sport of soccer, involving drills, exercises, and strategy discussion.