During 2018, a Parent Company Billed Its 100%-Owned Subsidiary for Computer

question 41

Multiple Choice

During 2018, a parent company billed its 100%-owned subsidiary for computer services at the rate of $1,000 per month.At year end, one month's bill remained unpaid.As a part of the consolidation process, net income

• A)​should be reduced $12,000.
• B)​should be reduced $1,000.
• C)​needs no adjustment.
• D)​needs an adjustment, but the amount is not provided by this information.

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Definitions:

Cultural Context

The various social, religious, economic, and cultural conditions that influence the life of an individual or community.

Rational Behavior

Decision-making or action taken based on logical, reasoned considerations, often aiming for the most optimal outcome.

Sex-Stereotypical Encouragement

The act of promoting or endorsing behaviors, activities, or roles that are traditionally associated with a person's gender.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.