Patti Corp In Its 12/31/16 Consolidated Balance Sheet, What Amount Should Patti

question 35

Multiple Choice

Patti Corp.has several subsidiaries (Aeta, Beta, and Gaeta) that are included in its consolidated financial statements.In its 12/31/16 separate balance sheet, Patti had the following intercompany balances before eliminations:
$$\begin{array} { l r r } & \text { Debit } & \text { Credit } \\\text { Current Receivable due from Aeta } & \$ 40,000 & \\\text { Noncurrent Receivable due from Beta } & 100,000 & \\\text { Cash Advance to Beta } & 26,000 & \\\text { Cash Advance from Gaeta } & & \$ 75,000 \\\text { Intercompany Payable to Gaeta } & & 40,000\end{array}$$ In its 12/31/16 consolidated balance sheet, what amount should Patti report as intercompany receivables?

• A)$166,000
• B)$51,000
• C)$26,000
• D)$0

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Definitions:

Lightning Protection

Systems or devices designed to protect structures and equipment from damage by directing lightning surges safely to the ground.

Grounded

Refers to a direct physical connection to the earth in an electrical system, used for safety and stability of the system.

Insulators

Materials that resist the flow of electrical current, often used to protect or separate conductors.

Electrons Stationary

Conceptually refers to electrons not moving or being in a static state within a material, although in reality, electrons are always in motion due to thermal energy.