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

Comprehend the purpose and process of the accounting cycle.

Analyze and interpret post-closing trial balance accounts.

Calculate current asset and liability totals from given account balances.

Prepare financial statements from adjusted trial balance data.

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Definitions:

Contract Clause

A specific provision or condition within a contract that specifies obligations, rights, or actions to be taken by the parties involved.

Union Services

Services provided by labor unions to their members, such as collective bargaining, legal representation, and negotiation of wages and working conditions.

Unionized Facility

A workplace where a labor union represents the interests of the employees and engages in collective bargaining with management for contracts covering wages, benefits, and working conditions.

Union Representation

The act of a union serving as the official body that negotiates and interacts with employers on behalf of its members.