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

question 35

Multiple Choice

Use the information below to answer the following question(s) .The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

-What is the value of the total assets belonging to the Alpha Division?

• A)$4,333,333
• B)$6,000,000
• C)$6,500,000
• D)$7,151,800
• E)$6,434,434

---

Definitions:

Attributed Ownership

The assignment of ownership interest in a company or property, often for the purpose of determining control or tax responsibilities.

Intra-Entity Gain

A gain recognized when transactions occur within segments of the same company, not usually recognized for external reporting purposes until realized with an external party.

Annual Amortization Expense

The portion of the cost of an intangible asset that is expensed through an organization's income statement each year over the asset's useful life.

Consolidated Tax Return

A tax return that combines the tax liability of all subsidiary companies with that of a parent company, treating them as one entity for tax purposes.