The Following Consolidation Adjusting Journal Entries Appeared at the End

question 3

Multiple Choice

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary.It received $1,200,000 for the shares. The amount of the share of post-acquisition profits and movements in equity balances,contributed to the group by the subsidiary,and attributable to the parent,is:

• A) ($250,000).
• B) $350,000.
• C) $750,000.
• D) $1,200,000.
• E) Cannot be determined from the information given.

Calculate desired profit margin and understand its application in pricing.

Understand the relationship between current full cost, profit margin, and target selling price.

Comprehend the impact of fixed and variable costs on product pricing.

Analyze profit margin changes when cost reduction is not possible.

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Definitions:

Flashbulb Memory

A vivid and detailed memory of a surprising and emotionally significant event, which can be recalled with high accuracy.

Autobiographical Memory

The aspect of memory that stores information regarding oneself, including personal experiences, emotions, and facts.

Reconstruct

The process of rebuilding or forming an object, concept, or cognitive representation after its analysis or deconstruction.