Stark Company, a 90% Owned Subsidiary of Parker, Inc

question 64

Multiple Choice

Stark Company, a 90% owned subsidiary of Parker, Inc. sold land to Parker on May 1, 2012, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2012, 2013, and 2014, respectively. Parker sold the land purchased from Stark in 2012 for $92,000 in 2014.
Compute Parker's reported gain or loss relating to the land for 2014.

• A) $12,000 gain.
• B) $5,000 loss.
• C) $12,000 loss.
• D) $7,000 gain.
• E) $7,000 loss.

Comprehend the decision-making processes within groups.

Recognize the importance of composition factors in group dynamics.

Understand the roles and functions of group members and leaders.

Understand the specialized types of research that involve group dynamics.

---

Definitions:

Interdependent Self-Construal

Interdependent self-construal refers to a conceptualization of the self in terms of connectedness to others and the extent to which individuals define themselves through their relationships.

Social Maturity

Social maturity is the ability of an individual to behave appropriately and adaptively in social situations, taking into account the wellbeing of themselves and others.

Reactive Aggression

Aggressive behavior in response to a perceived threat or provocation, often impulsive and without forethought of its consequences.

Aggressive Thoughts

Ideas or mental images that involve harming others or oneself, often associated with feelings of anger or dominance.