Connector Corporation Invested in an Unincorporated Joint Venture and Elected

question 20

Multiple Choice

Connector Corporation invested in an unincorporated joint venture and elected to use pro rata consolidation in preparing its financial statements.Connector reported income of $120,000 from its separate operations and net income of $150,000 for the year ended December 31,20X8.The joint venture reported assets of $150,000 and liabilities of $60,000 on January 1,20X8,and assets of $240,000 and liabilities of $75,000 on December 31,20X8.It made no distributions to owners during the year.Connector reports total assets (excluding its investment in the unincorporated joint venture) of $550,000 at December 31,20X8.
-Based on the preceding information,what is Connector's percentage ownership in the joint venture?

• A)20 percent
• B)50 percent
• C)40 percent
• D)25 percent

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Definitions:

Procedural Justice

The perception of fairness in the processes and methods used to make decisions and allocate resources.

Morality Standards

Principles or norms concerning the distinction between right and wrong or good and bad behavior.

Turnover Process

The mechanism by which employees leave an organization and are replaced by new staff, impacting workforce stability.

A Shock

A sudden and unexpected event that disrupts the stability or continuity of a system, often prompting significant changes or adaptations.