Use the Information Below to Answer the Following Question(s)

question 108

Multiple Choice

Use the information below to answer the following question(s) .
First Sporting Equipment manufactures sporting goods. Selected costs from the past year include:

-Period costs for First Sporting Equipment totaled

• A) $116,000.
• B) $99,000.
• C) $201,000.
• D) $32,000.

---

Definitions:

Equity Method

An accounting technique used to record investments in other entities, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor’s share of investee’s net assets.

Unit Trusts

Investment funds that allow investors to pool their money together in a single fund, which is managed by a fund manager.

Held for Sale

A classification for assets or disposal groups that are immediately available for sale in their current condition and for which sale is highly probable.

Control Test

A criterion used to determine whether an entity has control over another entity, which could influence consolidation decisions.