Based on the Following Information, What Amount Will Be Presented

question 113

Multiple Choice

Based on the following information, what amount will be presented for current assets on the consolidated balance sheet of Investor for its wholly owned subsidiary? $$\begin{array} { | l | r | r | } \hline & \text { Investor } & \text { Investee } \\\hline \text { Current assets } & \$ 500 & \$ 550 \\\hline \text { Long-term assets } & 300 & 50 \\\hline \text { Investment in investee } & 200 & 0 \\\hline \text { Current liabilities } & 350 & 200 \\\hline \text { Long-term liabilities } & 450 & 300 \\\hline \text { Equity } & 200 & 100 \\\hline\end{array}$$

• A)$300
• B)$500
• C)$550
• D)$1,050

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Definitions:

Cost of Goods Sold

This accounts for the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Merchandise Inventory Account

An account on a company's balance sheet that represents the products that a retail or wholesale company plans to sell.

Units of Inventory Purchased

The total quantity of items bought for resale or use in production during a specific period.