Clark CoHad the Following Transactions with Affiliated Parties During 20X1

question 34

Multiple Choice

Clark Co.had the following transactions with affiliated parties during 20X1:
-Sales of $60,000 to Dean,Inc.,with $20,000 gross profit.Dean had $15,000 of this inventory on hand at year end.Clark owns a 15% interest in Dean and does not exert significant influence.
-Purchases of raw materials totaling $240,000 from Kent Corp.,a wholly-owned subsidiary.Kent's gross profit on the sale was $48,000.Clark had $60,000 of this inventory remaining on December 31,20X1.
Before consolidating entries,Clark had consolidated current assets of $320,000.What amount should Clark report in its December 31,20X1,consolidated balance sheet for current assets?

• A) $303,000
• B) $320,000
• C) $317,000
• D) $308,000

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Definitions:

Stress Response

The body's reaction to a challenge or demand, involving physiological changes such as increased heart rate and hormonal adjustments.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.

Blood-Brain Barrier

The blood-brain barrier is a selective semipermeable border that prevents most substances in the blood from entering the brain, thus protecting it from pathogens and toxins while allowing essential nutrients to pass through.

Cortisol

A steroid hormone in the body, often released in response to stress and used as a marker for stress levels.