Stark Company, a 90% Owned Subsidiary of Parker, Inc

question 18

Multiple Choice

Stark Company, a 90% owned subsidiary of Parker, Inc. sold land to Parker on May 1, 2012, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2012, 2013, and 2014, respectively. Parker sold the land purchased from Stark in 2012 for $92,000 in 2014.
Compute income from Stark reported on Parker's books for 2012.

• A) $205,000.
• B) $200,000.
• C) $180,000.
• D) $175,500.
• E) $184,500.

---

Definitions:

Cerebellum

The “little brain” at the rear of the brainstem; functions include processing sensory input, coordinating movement output and balance, and enabling nonverbal learning and memory.

Basal Ganglia

A group of structures linked to the thalamus in the base of the brain and involved in coordination of movement.

Temporal Lobe

is a region of the brain located beneath the lateral fissure on both cerebral hemispheres, involved in processing auditory information and encoding memory.

Amygdala

A part of the brain located within the temporal lobe, involved in emotion processing, fear responses, and memory.