If Cale Corp

question 119

Multiple Choice

If Cale Corp.had net income of $444,000 in 2017, exclusive of the investment, what is the amount of consolidated net income?

• A) $569,000.
• B) $570,000.
• C) $571,000.
• D) $566,400.
• E) $444,000.

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Definitions:

Carrying Value

The book value of an asset on a balance sheet, representing its acquisition cost minus depreciation or amortization.

Ending Inventory

The value or quantity of stock and materials a company has at the end of a financial period.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.