Phelps CoUses the Sophisticated Equity Method to Account for the 80

question 14

Multiple Choice

Phelps Co.uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp.At the time of the acquisition, the fair values of the net asset required approximated their book values.Based upon the following information, what amount does Phelps Co.record as subsidiary income
$\begin{array}{lr}\text { Phelps internally generated income: } & \$ 250,000 \\\text { Shore internally generated income: } & \$ 50,000 \\\text { Intercompany profit on Shore beginning inventory: } & \$ 10,000 \\\text { Intercompany profit on Shore ending inventory: } & \$ 15,000\end{array}$

• A)$50,000
• B)$44,000
• C)$40,000
• D)$36,000

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Definitions:

Cronbach's Alpha

A measure used in statistics to assess the reliability, or internal consistency, of a set of scale or test items.

Scoring Consistency

The degree to which the scoring of assessments or measurements remains consistent across different times or evaluators.

Inter-Observational Reliability

The degree to which different observers or raters consistently assess or measure the same phenomenon in a similar way.

Inter Rater Reliability

The degree of agreement among different raters or observers assessing the same phenomenon, indicating the consistency of measurements.