The Following Consolidation Adjusting Journal Entries Appeared at the End

question 27

Multiple Choice

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary.It received $1 200 000 for the shares. $$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Profit on sale of investment } & 500000 & \\\hline \mathrm { Dr } & \text { Loss on sales of subsidiary } & 250000 & \\\hline \mathrm { Cr } & \text { Profit after tax } & & 179000 \\\hline \mathrm { Cr } & \text { Retained earnings } & & 271000 \\\hline \mathrm { Cr } & \text { Revaluation reserve } & & 300000 \\\hline\end{array}$$ The amount of the share of post-acquisition profits and movements in equity balances,contributed to the group by the subsidiary,and attributable to the parent,is:

• A) ($250 000)
• B) $350 000
• C) $750 000
• D) $1 200 000

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Definitions:

Ethnocentrism

Viewing the world through our own cultural value system and thereby judging actions and people based on our own culture’s views of right and wrong and good and bad.

Cultural Relativism

The principle of understanding and evaluating cultural practices and beliefs within their own social contexts rather than from an external standpoint.

Social Dominance Orientation

A scale that measures an individual’s preference for hierarchical relationships between social groups and the extent to which they support dominance and inequality among these groups.

Authoritarian Submission

A psychological behavior characterized by uncritical acceptance of authority, where individuals submit excessively to figures they perceive as authoritative.