Prime Industries Acquired an 80 Percent Interest in Sands Company

question 32

Multiple Choice

Prime Industries acquired an 80 percent interest in Sands Company by purchasing 24,000 of its 30,000 outstanding shares of common stock at book value of $105,000 on January 1, 2016. Sands reported net income in 2016 of $45,000 and in 2017 of $60,000 earned evenly throughout the respective years. Prime received $12,000 dividends from Sands in 2016 and $18,000 in 2017. Prime uses the equity method to record its investment. The balance of Prime's Investment in Sands account at December 31, 2017 is:

• A) $105,000.
• B) $138,600.
• C) $159,000.
• D) $165,000.

Understand the concept of social learning and its lifelong development.

Recognize the impact of different childcare practices, including allocare, on children's development.

Grasp the principles of cognitive theory and the significance of early relationships in forming working models for future interaction.

Comprehend Erik Erikson's stages of psychosocial development, particularly autonomy versus shame and doubt.

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Definitions:

Economic Interest

A vested interest in financial gains or losses, typically relating to investments, ownership, or participation in business ventures or market activities.

Risk of Loss

The potential that an investment or transaction may result in loss, attributed to various factors.

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

Shipping Term

Refers to agreed terms between a seller and buyer that outline the details about the delivery of goods, including who is responsible for shipping costs and risk of damage.