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

question 2

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:

-Swamp Co., a 55%-owned subsidiary of Pond Inc., made the following entry to record a sale of merchandise to Pond: All Swamp sales are at 125% of cost.One-fourth of this merchandise remained in the Pond's inventory at year-end.A working paper entry to eliminate unrealized profits from consolidated inventory would include a credit to Inventory in the amount of

• A) $2,000.
• B) $2,500.
• C) $8,000.
• D) $10,000.

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Definitions:

Program Evaluation

Research designed to assess procedures (e.g., social reforms, innovations) that are designed to produce certain changes or outcomes in a target population.

Applied Research

Research aimed at solving practical problems and improving human conditions by applying scientific principles and theories.

Reward Program

A system used to incentivize desired behaviors or actions through the use of rewards, often employed in educational, workplace, or consumer contexts.

Disruptive Behavior

Actions that interrupt the normal flow or processes of operations, often referring to inappropriate or problematic behaviors.