The Following Information Pertains to Questions

question 33

Multiple Choice

The following information pertains to questions
X Inc.owns 80% of Y Inc.During 2009,X Inc sold inventory to Y for $10,000.Half of this inventory remained in Y's warehouse at year end.Half of this inventory remained in Y's warehouse at year end.Also during 2009,Y Inc sold Inventory to X Inc.for $5,000.40% of this inventory remained in X's warehouse at year end.Both companies are subject to a tax rate of 50%.The gross profit percentage on sales is 20% for both companies.Unless otherwise stated,assume X Inc.uses the cost method to account for its Investment in Y.Inc.
-What is the after-tax dollar value of Y's unrealized profits during the year on its sales to X?

• A)$200.
• B)$300.
• C)$400.
• D)$500.

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Definitions:

Array

A systematic arrangement of similar objects, typically in rows and columns, or a data structure in computer science that consists of a collection of elements identified by at least one index or key.

David Marr's Model

A theory in cognitive science that describes vision as proceeding from a 2D view of the world to a 3D one through a series of processing stages.

Bottom-Up Knowledge

Knowledge processing that starts with the senses and the actual perception of stimuli, moving towards higher-level cognitive functions.

Primal Sketch

A concept in visual perception that refers to the initial representation of visual information in the brain, outlining shapes and locations of objects.