The Following Information Pertains to Questions

question 35

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.
-Assume that Y Inc.reported an after-tax net income of $20,000 in 2009,what would be Y's adjusted net income for the year?

• A)$20,000.
• B)$19,800.
• C)$20,200.
• D)$19,840.

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that shape the behavior and attitudes of members within an organization.

Shared Values

Fundamental beliefs or principles that are held in common by members of an organization or community.

Sense of Community

A feeling of belonging and mutual support within a group, where members share common values, beliefs, or interests.

Organizational Pyramid

A hierarchical structure of an organization, typically visualized as a pyramid, showing various levels of management and rank.