Portia Ltd

question 9

Multiple Choice

Portia Ltd.acquired 80% of Siro Ltd.on December 31,20X0.At the acquisition date,Siro's net assets totalled $15,000.Portia uses the cost method to record the acquisition.At December 31,20X1,the separate-entity financial statements showed the following:

During 20X1,Siro sold $7,000 of goods,with a gross margin of 40%,to Portia.At the end of 20X1,$3,000 of the goods were still in Portia's inventory.What is Portia's consolidated cost of goods sold for 20X1?

• A)$11,800
• B)$14,200
• C)$14,800
• D)$20,000

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Definitions:

Raw Scores

The original, untransformed scores or data collected from observations or experiments.

Hypothesized Mean

The mean value of a population parameter that is proposed in the null hypothesis, serving as a basis for testing statistical significance against observed data.

Standard Deviation

A measure of the dispersion or variability of a set of data points, quantifying how much the values differ from the mean.

Wechsler Adult Intelligence Scale

A standardized test designed to measure various aspects of human intelligence and cognitive ability in adults.