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

question 19

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,the total sales revenue reported in the consolidated income statement for 2014 would be

• A)$870,000.
• B)$880,000.
• C)$920,000.
• D)$970,000.

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Definitions:

Citizenry's Life

The collective lifestyle, experiences, and conditions of the citizens living within a particular country or community.

Power Resource Theory

Holds that the distribution of power among major classes partly accounts for the successes and failures of different political parties over the long term.

Political Power

The ability to influence or control the policies and actions of a government or society, often held by elected officials, governments, or influential groups and individuals.

Group Interests

The collective goals or concerns shared by a group of people, typically relating to their welfare, rights, or social and economic advancement.