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

question 31

Multiple Choice

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

Pelga Company routinely receives goods from its 80%-owned subsidiary, Swede Corporation. In 2014, Swede sold merchandise that cost $80,000 to Pelga for $100,000. Half of this merchandise remained in Pelga's December 31, 2014 inventory. This inventory was sold in 2015. During 2015, Swede sold merchandise that cost $160,000 to Pelga for $200,000. $62,500 of the 2015 merchandise inventory remained in Pelga's December 31, 2015 inventory. Selected income statement information for the two affiliates for the year 2015 was as follows:

-Consolidated cost of goods sold for Pelga and Subsidiary for 2015 were

• A)$512,000.
• B)$526,000.
• C)$522,500.
• D)$528,000.

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Definitions:

Social Expectancies

Norms or beliefs about how people are supposed to behave in certain social situations, influencing interactions and perceptions.

Intellectual Expectancies

Preconceived standards or beliefs about intellectual abilities or outcomes that can influence behavior and performance.

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

Neuroticism

A personality trait characterized by sadness, moodiness, and emotional instability.