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

question 39

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 2011.

• A)$9,400.
• B)$9,375.
• C)$9,425.
• D)$9,325.
• E)$8,485.

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Definitions:

Mucous Membrane

A layer of epithelial tissue that lines various cavities of the body and secretes mucus, which is protective and lubricating.

Cutaneous Membrane

The cutaneous membrane refers to the skin, the body's outer covering that protects internal organs and structures.

Inhibiting Release

The process of preventing the secretion or expression of a substance, often referring to hormones or neurotransmitters.