The Following Information Pertains to Questions

question 58

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 Retained Earnings for 2010?

• A)$340,000
• B)$368,000
• C)$376,000
• D)$558,000

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Definitions:

Back-end Database

The part of a database application that stores the data and is accessed indirectly by users through a front-end interface.

Front-end Database

The part of a database system that interacts directly with the user, providing an interface for data entry, querying, and report generation.

File-server Database

A type of database that is stored and managed on a network server, allowing multiple users to access and update its contents.

Startup Command-line

A command entered into the command-line interface to initiate or start a program's operation.