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

question 39

Multiple Choice

Use the following information to answer the question(s) below.
Pew Corporation acquired 80% ownership of Sordid Incorporated,at a time when Pew's investment cost was equal to 80% of Sordid's book value.At the time of acquisition,the book values and fair values of Sordid's assets and liabilities were equal.Pew uses the equity method.During 2011,Pew sold goods to Sordid for $160,000 making a gross profit percentage of 20%.Half of these goods remained unsold in Sordid's inventory at the end of the year.Income statement information for Pew and Sordid for 2011 were as follows:

-The 2011 consolidated income statement showed cost of goods sold of

• A)$500,000.
• B)$516,000.
• C)$532,000.
• D)$660,000.

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Definitions:

Marine Mammal Scientist

A researcher who studies the biology, behavior, and conservation of mammals living in ocean environments.

Dolphins

Aquatic mammals known for their intelligence, social nature, and abilities to communicate, play, and perform complex behaviors.

Stress

The body's response to any demand or challenge, which can be triggered by both positive and negative experiences.

Unethical

Acting in ways that go against moral principles and professional standards.