Yukon Co Acquired 75% Percent of the Voting Common Stock of of Ontario

question 98

Multiple Choice

Yukon Co. acquired 75% percent of the voting common stock of Ontario Corp. on January 1, 2013. During the year, Yukon made sales of inventory to Ontario. The inventory cost Yukon $260,000 and was sold to Ontario for $390,000. Ontario still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intra-entity profit that should be eliminated in the consolidation process at the end of 2013 is

• A) $15,000.
• B) $20,000.
• C) $32,500.
• D) $30,000.
• E) $110,000.

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Definitions:

Avoidable Turnover

Employee departures that could have been prevented by addressing underlying issues, such as job dissatisfaction or workplace conflicts.

Employee Training

The process of providing workers with the knowledge, skills, and abilities required to perform their job effectively.

Raising Morale

Taking actions that have a positive impact on employee satisfaction and work performance, including introducing a group bonus, allowing job autonomy, providing training, assigning whole tasks, gaining direct feedback from users, and increasing group interaction. See morale.

Morale Problem

Issues related to the decline in confidence, enthusiasm, and discipline among members of a group or team.