West Corp Owned 70% of the Voting Common Stock of East

question 65

Multiple Choice

West Corp. owned 70% of the voting common stock of East Co. East owned 60% of Compass Co. West and East both used the initial value method to account for their investments. The following information was available from the financial statements and records of the three companies: Operating income included unrealized intra-entity gains (which are related to inventory transfers) but did not include dividend income from investment in subsidiary. What amount should have been reported for consolidated net income?

• A) $1,285,000.
• B) $1,331,700.
• C) $1,349,000.
• D) $1,315,000.
• E) $1,314,900.

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Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, to assess whether their population mean ranks differ.

Nonparametric Method

Statistical methods that do not assume a specific distribution for the data, making them flexible in analyzing data without certain underlying assumptions.

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Two or more groups of data that do not influence each other and are randomly selected from a population.