Use the Following Information to Answer the Question(s)below

question 31

Multiple Choice

Use the following information to answer the question(s) below.
Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying book value.At the time of purchase,the book value and fair value of Spillway's net assets were equal.The two companies report the following information for 2011 and 2012.
During 2011,one company sold inventory to the other company for $50,000 which cost the transferor $40,000.As of the end of 2011,30% of the inventory was unsold.In 2012,the remaining inventory was resold outside the consolidated entity.

-For 2011,consolidated net income will be what amount if the intercompany sale was downstream?

• A)$180,000
• B)$253,000
• C)$256,000
• D)$259,000

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Definitions:

White-only Society

A social system where only individuals identified as white are allowed participation, benefits, or residence, historically enforced through segregation and discrimination.

Violence

The use of physical force with the intent to harm, damage, or kill individuals or property.

Social Structure

The organized pattern of social relationships and social institutions that together compose society, including the distribution of power and resources.

Race

A social construct that categorizes people based on physical characteristics, ancestry, historical affiliation, or shared culture, often influencing individuals' identities and experiences.