Pittle Corporation Acquired a 80% Interest in Seel Corporation at a Cost

question 2

Essay

Pittle Corporation acquired a 80% interest in Seel Corporation at a cost equal to 80% of the book value of Seel's net assets several years ago.At the time of purchase,the fair value and book value of Seel's assets and liabilities were equal.Pittle purchases its entire inventory from Seel at 150% of Seel's cost.During 2011,Seel sold $490,000 of merchandise to Pittle.Pittle's beginning and ending inventories for 2011 were $72,000 and $66,000,respectively.Income statement information for both companies for 2011 is as follows:
Required:
Prepare a consolidated income statement for Pittle Corporation and Subsidiary for 2011.

Understand the effectiveness and limitations of fear-based messages in persuasion.

Recognize the sleeper effect and its impact on long-term attitude change.

Identify the relationship between persuasibility and self-esteem.

Understand how sex stereotypes can influence perceptions in decision-making contexts.

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Definitions:

Allocation of Resources

The process of allocating resources among competing uses or projects in order to achieve desired outcomes.

Poverty Rate

The percentage of the population whose family income falls below an absolute level called the poverty line.

Average Income

The total income received by a group divided by the number of people in that group.

Poverty Rate

The percentage of the population whose income falls below a certain threshold, defining them as living in poverty.