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 intra-entity purchases. Gargiulo was acquired on January 1, 2010.
Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.
Compute the equity in earnings of Gargiulo reported on Posito's books for 2012.
Definitions:
Types Of Decisions
Decisions can be categorized based on complexity, urgency, and impact, such as strategic, tactical, operational, and routine decisions.
Equity Theory
A concept in social psychology that posits individuals are motivated by fairness, and if they identify inequalities in the input-outcome ratios compared to others, it will result in work-related tensions.
Comparison Other
An individual or group used as a reference point for evaluation, often influencing self-perception and behavior.
Inequity
The perceived unfairness or imbalance in the distribution or treatment in social exchanges, leading to dissatisfaction and tension.
Q42: On January 1, 2011, Veldon Co., a
Q54: On January 1, 2010, Jumper Co. acquired
Q68: Thomas Inc. had the following stockholders' equity
Q76: Webb Company owns 90% of Jones Company.
Q85: When is a goodwill impairment loss recognized?<br>A)
Q86: The forward rate may be defined as<br>A)
Q93: Where do intra-entity sales of inventory appear
Q96: Where is the disposition of a remeasurement
Q99: On January 1, 2011, Pride, Inc. acquired
Q113: What is the primary difference between recording