REFERENCE: Ref.05_05 Gargiulo Company,a 90% Owned Subsidiary of Posito Corporation,sells Inventory to Inventory

question 51

Multiple Choice

REFERENCE: Ref.05_05
Gargiulo Company,a 90% owned subsidiary of Posito Corporation,sells inventory to Posito at a 25% profit on selling price.The following data are available pertaining to intercompany purchases.Gargiulo was acquired on January 1,2009.
Assume the equity method is used.The following data are available pertaining to Gargiulo's income and dividends.

-Compute the noncontrolling interest in Gargiulo's net income for 2009.

• A)$6,970.
• B)$7,000.
• C)$7,030.
• D)$6,270.
• E)$6,230.

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Definitions:

Maximum Count

The highest number of occurrences or values in a given set or series.

Ace of Spades

A specific playing card in a deck, often distinguished by a unique design and regarded as the highest card in the suit of spades.

Probability

A statistical measure quantifying the chance that an event will occur, evaluated as a value between 0 (never occurs) and 1 (always occurs).

Ace

The playing card with a single symbol on it, often considered the highest or lowest card in many card games.