Pink IncSells Half of Its 70% Interest in Brown Co

question 14

Multiple Choice

Pink Inc.sells half of its 70% interest in Brown Co.on January 1,20X6.On that date,the fair value of Brown as a whole is $940,000 and the carrying amount of Pink's 70% share of Brown is $320,000.What,if any,is the gain on the sale of half of Pink's interest in Brown?

• A) $0
• B) $9,000
• C) $169,000
• D) $338,000

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Definitions:

Culturally Relative

The understanding that beliefs, values, norms, and practices should be evaluated in the context of the specific culture from which they originate, rather than judged against the standards of another culture.

Western Societies

Refers to societies that are historically influenced by European cultures, particularly in aspects such as legal systems, economies, philosophies, and overall cultural practices.

Biologically Determined

Pertains to traits, behaviors, or conditions that are influenced by genetic makeup rather than environmental factors or personal choice.

Socialized Medicine Theory

A healthcare system where the government owns and operates healthcare facilities and providers are government employees.