Portia Ltd

question 29

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 amount should be shown on the consolidated statement of financial position for the non-controlling interest at December 31,20X1?

• A)$ 720
• B)$1,720
• C)$3,480
• D)$3,720

Understand the scale and variety of retail establishments in the United States.

Comprehend the significance of product mix and merchandise lines in retail.

Recognize the different levels of service provided by retailers.

Gain knowledge about energy conservation measures in retail establishments.

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Definitions:

Price Support

Government intervention in a market to maintain the price at a certain level, usually done through the purchase of surplus stock or direct subsidies to producers.

Price Floor

A minimum price, set by law or regulation, that must be paid for a good or service; often implemented to protect producers.

Price Support

Government interventions in the market to maintain the price of a commodity at a certain level.

Demand Curve

A chart that illustrates the link between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.