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

question 20

Multiple Choice

Use the following information to answer the question(s) below.
Pouch Corporation acquired an 80% interest in Shenley Corporation on January 1,2012,when the book values of Shenley's assets and liabilities were equal to their fair values.The cost of the 80% interest was equal to 80% of the book value of Shenley's net assets.During 2012,Pouch sold merchandise that cost $70,000 to Shenley for $86,000.On December 31,2012,three-fourths of the merchandise acquired from Pouch remained in Shenley's inventory.Separate incomes (investment income not included) of the two companies are as follows:

-What is Pouch's income from Shenley for 2012?

• A)$27,200
• B)$29,600
• C)$39,200
• D)$49,000

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Definitions:

Direct Strategy

A communication method that involves straightforwardly presenting the primary message at the beginning of the communication.

Indirect Strategy

A communication approach where the key message is not presented immediately but rather introduced after providing background information or explanations.

Refuse Requests

The act of denying or rejecting an appeal or solicitation for something.

Monetary Contribution

A donation or payment made in the form of money to support a cause, organization, or individual.