Selected Information from the Separate and Consolidated Balance Sheets and Income

question 42

Multiple Choice

Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, 20X5, and for the year then ended is as follows:
Additional information:
During 20X5, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales.
-In Pare's consolidating worksheet,what amount of unrealized intercompany profit was eliminated?

• A) $12,000
• B) $6,000
• C) $58,000
• D) $64,000

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Definitions:

Hypotheses

Hypotheses are proposed explanations made on the basis of limited evidence as starting points for further investigation.

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly of the mean.

Means

Refers to arithmetic averages derived from a set of numerical data, indicating typical or central values.

Standard Deviations

Standard deviations measure the amount of variability or dispersion from the average in a set of data.