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

question 26

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:

-What is Pew's income from Sordid for 2011?

• A)$32,000
• B)$48,000
• C)$60,000
• D)$75,000

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Definitions:

Single Gene

A gene that by itself can determine a particular trait or phenotype.

Multiple Versions

Different editions or forms of the same content or object, often existing to suit different needs or preferences.

Protein

Large, complex molecules made up of amino acids that play many critical roles in the body, including in the structure, function, and regulation of tissues and organs.

Encode

The process by which genetic information from DNA is used to produce proteins.