The Following Information Pertains to Questions

question 52

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 amount of Consolidated Net Income for 2010?

• A)$218,000
• B)$216,000
• C)$200,000
• D)$208,000

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Definitions:

Sterile Urine Specimen

A urine sample collected and stored in a way that prevents contamination.

Urostomy

A surgical procedure creating an opening in the abdominal wall for urine to be excreted directly from the kidneys, bypassing the bladder.

Two-piece Pouch System

A type of ostomy bag system composed of two detachable parts: one that adheres to the skin around the stoma and another that collects waste, allowing for easier bag changes.

Sterile Gloves

Gloves that have been treated to eliminate all microorganisms, used to prevent contamination during medical procedures.