Assuming There Are No Excess Amortizations or Other Intra-Entity Transactions

question 37

Multiple Choice

Assuming there are no excess amortizations or other intra-entity transactions, compute income from Stiller on Leo's books for 2017.

• A) $110,000
• B) $100,000.
• C) $125,000.
• D) $ 85,000.
• E) $ 88,000.

---

Definitions:

Observed Time

The actual amount of time measured for a task or process to be completed, as opposed to estimated or standard time.

Allowance Factor

A coefficient applied to account for uncertainties, variations, or additional capacity in calculations or designs.

Standard Time

The pre-determined time allowed for the completion of a specific task, under normal working conditions.

Performance Rating

An evaluation measure used to assess the efficiency, effectiveness, or output level of employees, processes, or equipment against predefined standards.