Companies A,B and C Are All Part of the One

question 39

Multiple Choice

Companies A,B and C are all part of the one economic entity,but are all separate legal entities required to prepare their own financial statements.Company A sold Company B inventory that cost $56 000 for $78 000.At the end of the same period Company B has three-quarters of that inventory still on hand and the rest has been sold to an entity outside the economic group.At what amount should the inventory remaining in Company B be recorded in the consolidated statements?

• A) $14 625
• B) $56 000
• C) $58 500
• D) $42 000

---

Definitions:

James-Lange Theory

A theory of emotion proposing that emotions result from our interpretations of our bodily reactions to stimuli.

Physiological Changes

Alterations in the normal function or structure of a living organism, often in response to environmental stimuli or internal conditions.

William James

An American philosopher and psychologist regarded as a founder of psychology in the United States, known for his work on pragmatism and the psychology of consciousness.

Physical Component

Aspects of something that are tangible or involve physical attributes or manifestations.