The Following Information Pertains to Questions

question 47

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 inventory that would appear on Seek's Consolidated Balance Sheet as at December 31,2010?

• A)$132,000
• B)$130,000
• C)$360,000
• D)$312,000

---

Definitions:

Milgram's Experiment Variation

Milgram's Experiment Variation refers to any of the numerous adaptations or modifications of the original 1960s experiment by Stanley Milgram that studied obedience to authority by instructing participants to administer electric shocks to another person.

Confederate

An individual or entity that is part of a coalition or group aimed at achieving a common goal.

Shocks

Sudden and often violent disturbances or fluctuations in a physical system, economy, or within a psychological context.

Milgram's Original Experiment

A psychological experiment conducted by Stanley Milgram, which investigated obedience to authority and ethical boundaries.