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

question 17

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 intercompany sale mentioned above was an upstream sale,what will be the reported amount of total consolidated sales revenue for 2015?

• A)$1,025,000
• B)$1,900,000
• C)$1,950,000
• D)$2,000,000

Explain the regression toward the mean.

Calculate and interpret the range and standard deviation.

Understand the concepts of percentile and normal distribution.

Evaluate the impact of extreme scores on measures of variation.

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Definitions:

Representative Democracy

A form of government in which elected officials represent a group of people, making decisions and passing laws on their behalf.

Productive

Refers to the efficiency and effectiveness in producing goods or services, often measured in terms of output per unit of input.

Government Activity

Actions or initiatives undertaken by the state or governmental bodies to govern, regulate, or manage public affairs.

Public Choice Analysis

An economic framework that applies theories and methods traditionally used to analyze market behavior to political decision-making.