Use the Following Information to Answer the Question(s) Below

question 37

Multiple Choice

Use the following information to answer the question(s) below.

Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying book value. At the time of purchase, the book value and fair value of Spillway's net assets were equal. The two companies report the following information for 2014 and 2015.

During 2014, one company sold inventory to the other company for $50,000 which cost the transferor $40,000. As of the end of 2014, 30% of the inventory was unsold. In 2015, the remaining inventory was resold outside the consolidated entity.

-If the sale referred to above was a downstream sale,by what amount must Inventory on the consolidated balance sheet be reduced to reflect the correct balance as of the end of 2014?

• A)$3,000
• B)$10,000
• C)$14,000
• D)$20,000

Understand the implications of interest compounding frequencies on savings and loan scenarios.

Understand the fundamental concepts and historical roots of different schools of psychology.

Recognize the methodological approaches used by various psychological perspectives.

Understand the role of the environment and evolution in shaping behavior according to different psychological theories.

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Definitions:

Switching Costs

Economic barriers that prevent or discourage consumers from changing products or service providers.

Supplier Power

Refers to the ability of providers of goods or services to influence the price and terms under which those goods or services are sold.

Critical Inputs

Essential resources or components required for a production process or operational function.

Unsubstitutable

Describes a good or service that cannot be replaced or substituted by another due to its unique characteristics or the specific needs it meets.