Gargiulo Company, a 90% Owned Subsidiary of Posito Corporation, Sells

question 83

Multiple Choice

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, 2012. 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 2014.

• A) $84,600.
• B) $84,375.
• C) $83,925.
• D) $84,825.
• E) $84,850.

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Definitions:

Skinner

B.F. Skinner was an American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Reinforcement

A concept in behavioral psychology where a behavior is strengthened or increased by following it with a positive outcome or reward.

Biofeedback

is a technique used to help individuals learn to control bodily processes normally thought to be involuntary, such as heart rate, using monitoring devices.

Brain Waves

Electrical impulses in the brain, measurable by EEG, that reflect different states of arousal, from deep sleep to intense concentration.