Use the Following Information to Answer the Question(s)below

question 13

Multiple Choice

Use the following information to answer the question(s) below.
Pouch Corporation acquired an 80% interest in Shenley Corporation on January 1,2012,when the book values of Shenley's assets and liabilities were equal to their fair values.The cost of the 80% interest was equal to 80% of the book value of Shenley's net assets.During 2012,Pouch sold merchandise that cost $70,000 to Shenley for $86,000.On December 31,2012,three-fourths of the merchandise acquired from Pouch remained in Shenley's inventory.Separate incomes (investment income not included) of the two companies are as follows:

-The consolidated income statement for Pouch Corporation and subsidiary for the year ended December 31,2012 will show consolidated cost of sales of

• A)$120,000.
• B)$136,000.
• C)$148,000.
• D)$210,000.

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Definitions:

Conservationism

An environmental movement focused on the preservation and careful management of natural resources to prevent their degradation or depletion.

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A significant U.S. presidential election where Woodrow Wilson, a Democrat, won against incumbent Republican William Howard Taft, and former president Theodore Roosevelt, who ran as a Progressive.

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The fundamental right of every human to control their own labor and property, including the ability to work, produce, consume, and invest in any way they please, with minimal interference from government.