The Following Information Pertains to Questions

question 45

Multiple Choice

The following information pertains to questions
Find Corp.is a joint venture in which Seek Inc.has a 20% interest.Seek uses the equity method to account for its investment but has yet to make any journal entries for 2010.The financial statements of both companies are shown below on December 31,2010. During 2010,Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales.At the end of 2010,Find's inventory contained $30,000 worth of merchandise purchased from Seek.Find also owed $50,000 to find at the end of 2010.
Seek shall use the proportionate consolidation method (current Canadian GAAP) to report its investment in Find Corp.for 2010.Both companies are subject to 40% tax rate.
-What is the total amount of intercompany profits in ending inventory?

• A)$30,000
• B)$20,000
• C)$15,000
• D)$2,000

Understand the concept of the marginal product and its significance in production.

Comprehend the relationship between marginal product, product price, and the value of the marginal product.

Analyze how firms make hiring decisions based on the value of the marginal product and wage rates.

Identify the factors contributing to the demand for labor in perfectly competitive markets.

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Definitions:

Milkshakes

A creamy beverage made from milk, ice cream, and often flavorings or sweeteners like syrup or fruit.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given budget at set prices.

Price Increase

An upward adjustment in the selling price of goods or services.

Tea And Scone

A traditional British snack or light meal, consisting of a cup of tea and a small cake or biscuit.