The Following Information Pertains to Questions

question 37

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 sales that would appear on the Consolidated Income Statement?

• A)$1,000,000
• B)$880,000
• C)$920,000
• D)$816,000

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Definitions:

XY

A chromosomal designation for male sex in many organisms, including humans, where males typically have one X and one Y chromosome.

SRY Gene

A sex-determining gene on the Y chromosome that triggers the development of male anatomical features.

Androgen Insensitivity Syndrome

A condition in which a person who is genetically male is resistant to male hormones (called androgens), leading to the development of female physical traits despite having a male genetic makeup.

Klinefelter Syndrome

A genetic condition affecting males, characterized by an additional X chromosome, which can lead to developmental differences and infertility.