Sub Company Sells All Its Output at 20 Percent Above

question 6

Multiple Choice

Sub Company sells all its output at 20 percent above cost to Par Corporation.Par purchases its entire inventory from Sub.The incomes reported by the companies over the past three years are as follows:
Sub Company sold inventory for $300,000,$262,500 and $337,500 in the years 20X6,20X7,and 20X8 respectively.Par Company reported ending inventory of $105,000,$157,500 and $180,000 for 20X6,20X7,and 20X8 respectively.Par acquired 70 percent of the ownership of Sub on January 1,20X6,at underlying book value.The fair value of the noncontrolling interest at the date of acquisition was equal to 30 percent of the book value of Sub Company.
-Based on the information given above,what will be the consolidated net income for 20X7?

• A)$495,000
• B)$317,750
• C)$486,250
• D)$690,000

Understand the relationship between various personality traits and success in high-status occupations.

Comprehend the concept of locus of control and its significance in personality.

Recognize the behavioral implications of low and high levels of self-esteem.

Differentiate between the Big Five personality factors and their relevance to job performance.

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Definitions:

Adversarial Arrangements

Situations or agreements where parties involved have opposing interests or are in competition with each other.

Creative Problem Solvers

Individuals or groups who use innovative and imaginative approaches to finding solutions for complex issues or challenges.

Planning

Establishing a broad outline for goals, policies, and procedures that will accomplish the objectives of the organization.