Chandler Ltd

question 19

Multiple Choice

Chandler Ltd. owns 65% of Stork Co. and accounts for its investment using the cost method. During 20X3, Chandler sold its only land holding to Stork for a $25,000 profit. At the end of 20X4, Stork showed the land on its single-entity financial statement at a value of $100,000. What balance should Chandler show on its consolidated statement of financial position for the land?

• A)$0
• B)$75,000
• C)$100,000
• D)$125,000

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Definitions:

Economic Immigration

The movement of individuals from one country to another with the intention of seeking employment or better economic prospects.

Standard of Living

The amount of affluence, ease, material items, and basic requirements present for a particular socioeconomic category or geographical zone.

Lower Prices

A reduction in the cost of goods and services which can stimulate demand and increase the quantity sold.

Prospective Country

A term potentially referring to a country viewed with regard to its future potential for development, investment, or growth.