REFERENCE: Ref.05_10 Stark Company,a 90% Owned Subsidiary of Parker,Inc. ,Sold Land to Land

question 73

Multiple Choice

REFERENCE: Ref.05_10
Stark Company,a 90% owned subsidiary of Parker,Inc. ,sold land to Parker on May 1,2009,for $80,000.the land originally cost Stark $85,000.Stark reported net income of $200,000,$180,000,and $220,000 for 2009,2010,and 2011,respectively.Parker sold the land it purchased from Stark in 2009 for $92,000 in 2011.
-Compute income from Stark reported on Parker's books for 2009.

• A)$205,000.
• B)$200,000.
• C)$180,000.
• D)$175,500.
• E)$184,500.

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Definitions:

Fear And Attitude

The relationship between the emotion of fear and individuals' attitudes, where fear can significantly influence beliefs, feelings, and behaviors towards an object, person, or situation.

Elaboration Likelihood Model

A theory explaining different routes of persuasion (central and peripheral) based on the degree of cognitive effort a listener uses.

Persuasion Routes

In psychology, refers to the different ways in which individuals can be persuaded, notably divided into the central route and peripheral route as per the Elaboration Likelihood Model.

Fear Appeals

A persuasive message that attempts to arouse fear in order to divert behavior through the threat of harmful consequences.