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

question 57

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.
For consolidation purposes, what amount would be debited to cost of goods sold for the 2012 consolidation worksheet with regard to unrealized gross profit of the intra-entity transfer of merchandise?

• A) $300.
• B) $240.
• C) $2,000.
• D) $1,600.
• E) $270.

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Having parts that match in size, shape, and position on both sides of a dividing line.

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A common type of benign skin growth that appears as a small, dark brown spot, caused by clusters of pigmented cells.

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A type of skin cancer that develops from the pigment-producing cells known as melanocytes.

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A physical form of matter that has a defined shape and volume without fluid properties.