Pfeifer Corporation Acquired an 80% Interest in Stern Corporation Several

question 31

Essay

Pfeifer Corporation acquired an 80% interest in Stern Corporation several years ago when the book values and fair values of Stern's assets and liabilities were equal. At the time of acquisition, the cost of the 80% interest was equal to 80% of the book value of Stern's net assets. Separate company income statements for Pfeifer and Stern for the year ended December 31, 2014 are summarized as follows:
During 2013, Pfeifer sold merchandise that cost $120,000 to Stern for $180,000. Half of this merchandise remained in Stern's inventory at December 31, 2013. During 2014, Pfeifer sold merchandise that cost $150,000 to Stern for $225,000. One-third of this merchandise remained in Stern's December 31, 2014 inventory.
Required:
Prepare a consolidated income statement for Pfeifer Corporation and Subsidiary for 2014.

Recognizing the impact of memory bias on personal relationships and self-perception.

Insight into the validity concerns of recovered memories and the role of the misinformation effect.

Understanding the process of false memory creation and distinguishing between types of events susceptible to false recollections.

Awareness of gender differences in the experiences of abuse and their memory implications.

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Definitions:

Increased Value

The appreciation or rise in the worth of an asset or investment over a period of time.

Variance

A measure of the spread between numbers in a data set, indicating how much the numbers differ from the mean.

Arithmetic Average

A statistical measure of central tendency calculated by summing a set of values and dividing by the number of values in the set.

Geometric Average

A method of calculating the average rate of return that accounts for compounding, commonly used for investment portfolios.