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

question 4

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.

-For 2014,consolidated net income will be what amount if the intercompany sale was downstream?

• A)$180,000
• B)$253,000
• C)$256,000
• D)$259,000

Comprehend the principle of foreign exchange rates and their implications for international trade.

Identify different forms of business organizations and their characteristics.

Grasp the concept of international trade and the reasons behind it.

Understand the consequences of trade restrictions on economies.

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Definitions:

FMVSS-108

Federal Motor Vehicle Safety Standard 108, outlining requirements for automotive lighting, reflective devices, and associated equipment in the United States.

Bogie

Tandem-axle undercarriage and associated suspension linkage.

Trailer Load

The weight or cargo that a trailer is carrying or capable of carrying, important for safety and regulatory compliance while towing.

Tractor Suspension

The system in a tractor that absorbs shocks and vibrations from the ground, improving comfort for the driver and stability of the vehicle.