Paper Corporation Holds 80 Percent of the Voting Shares of Scissor

question 34

Multiple Choice

Paper Corporation holds 80 percent of the voting shares of Scissor Company.On January 1,20X8,Scissor purchased $100,000 par value 12 percent first mortgage bonds of Paper from Cruse for $115,000.Paper originally issued the bonds to Cruse on January 1,20X6,for $110,000.The bonds have an 8-year maturity from the date of issue.Scissor's reported net income of $65,000 for 20X8,and Paper reported income (excluding income from ownership of Scissor's stock) of $90,000.
-Based on the information given above,what amount of consolidated net income should be reported for 20X8?

• A)$163,750
• B)$161,250
• C)$146,250
• D)$148,750

Understand compensable factors and their impact on equity and compliance with pay equity legislation.

Recognize the challenges and considerations in establishing and maintaining internal equity through job evaluations.

Identify and use tools to manage sensitive information in Excel documents.

Understand and apply views and display settings for efficient data management and presentation.

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Definitions:

Unit Product Cost

The cost of producing one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Absorption Costing

A costing approach that integrates both direct and indirect costs associated with manufacturing into the product's total cost.

Ending Inventory

The value of the goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Variable Costing

A costing method where only variable costs are considered when determining the cost of goods sold, excluding fixed overhead.