Small-Town Retail Owns 70 Percent of Supplier Corporation's Common Stock

question 49

Multiple Choice

Small-Town Retail owns 70 percent of Supplier Corporation's common stock. For the current financial year, Small-Town and Supplier reported sales of $450,000 and $300,000 and expenses of $290,000 and $240,000, respectively.
-Based on the preceding information,what is the amount of net income to be reported in the consolidated income statement for the year under the entity theory approach?

• A) $210,000
• B) $202,000
• C) $160,000
• D) $220,000

---

Definitions:

Worldly Institutions

institutions that have global influence or operations, affecting people and cultures across different countries and regions.

Moral Guidance

Involves advice or direction provided to help individuals distinguish right from wrong and to act ethically in various situations.

Social Change

A process in which societal structures, cultural norms, and values evolve over time, often leading to significant transformations in communities and nations.

Émile Durkheim

A founding figure in sociology known for his theory on social facts and the study of social solidarity.