The Net Incomes for Parent and Sub Inc for the Year

question 27

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. If Parent Company purchased 80% of Sub Inc. for $180,000, the Liabilities section of Parent's Consolidated Balance Sheet on the date of acquisition (August 1, 2012) would total what amount under GAAP after January 1, 2011?

• A) $470,000
• B) $474,000
• C) $500,000
• D) $519,000

Distinguish between cost structures of different production levels and their implications for business decisions.

Recognize the relationship between the quantity of inputs and production efficiency.

Understand the significance of the shape of long-run average cost curves.

Apply knowledge of costs to assess optimal input purchase decisions.

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Definitions:

Montreal

A major city in Quebec, Canada, known for its cultural diversity, historical sites, and economic significance.

Edmonton

The capital city of Alberta, Canada, known for its vibrant culture and as the gateway to the North.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, spoilage, and opportunity costs.

Per Month

A time frame or period used to measure or track events on a monthly basis.