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

question 39

Multiple Choice

Use the following information to answer the question(s) below.
Pew Corporation acquired 80% ownership of Sordid Incorporated,at a time when Pew's investment cost was equal to 80% of Sordid's book value.At the time of acquisition,the book values and fair values of Sordid's assets and liabilities were equal.Pew uses the equity method.During 2011,Pew sold goods to Sordid for $160,000 making a gross profit percentage of 20%.Half of these goods remained unsold in Sordid's inventory at the end of the year.Income statement information for Pew and Sordid for 2011 were as follows:

-The 2011 consolidated income statement showed cost of goods sold of

• A)$500,000.
• B)$516,000.
• C)$532,000.
• D)$660,000.

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Definitions:

Reproductive Partnership

A relationship between individuals focusing on the mutual goal of producing offspring, often involving various forms of cooperation in raising the young.

One Male And One Female

A phrase typically used to denote the presence or requirement of two individuals of opposite sex, often in biological or social contexts.

Infanticide

Infanticide refers to the act of killing an infant or very young child, a practice that has occurred in various forms across different societies and time periods.

Biological Relatedness

A measure of genetic similarity between individuals, often used in the context of family and ancestry.