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

question 49

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 2014.

• A) $204,300.
• B) $202,500.
• C) $193,500.
• D) $191,700.
• E) $198,000.

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Definitions:

Thermoreceptors

Sensory receptors in the skin and other organs that detect changes in temperature.

Pain Receptors

Nerve receptors specifically sensitive to various forms of damaging stimuli, resulting in the perception of pain.

General Senses

Sensory perceptions such as touch, temperature, pain, and proprioception that are distributed throughout the body.

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by converting them into electrical impulses for interpretation by the nervous system.