Prince Corp

question 98

Multiple Choice

Prince Corp. owned 80% of Kile Corp.'s common stock. During October 2011, Kile sold merchandise to Prince for $140,000. At December 31, 2011, 50% of this merchandise remained in Prince's inventory. For 2011, gross profit percentages were 30% of sales for Prince and 40% of sales for Kile. The amount of unrealized intra-entity profit in ending inventory at December 31, 2011 that should be eliminated in the consolidation process is

• A) $28,000.
• B) $56,000.
• C) $22,400.
• D) $21,000.
• E) $42,000.

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Definitions:

Monozygotic Twins

Identical twins that result from the fertilization of a single egg that then splits into two, sharing 100% of their genetic material.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time but developed from two separate eggs fertilized by two different sperm.

Coefficient Alpha

A statistical measure, also known as Cronbach's alpha, used to assess the reliability or internal consistency of a set of scale or test items.

Split-half Reliability

A measure of the consistency of results across halves of a test, indicating how well two halves of a test measure the same attribute or quality.