Gargiulo Company, a 90% Owned Subsidiary of Posito Corporation, Sells

question 80

Multiple Choice

Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2010. Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. Compute the non-controlling interest in Gargiulo's net income for 2010.

• A) $6,970.
• B) $7,000.
• C) $7,030.
• D) $6,270.
• E) $6,230.

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Definitions:

Modality

The number of peaks or modes in the distribution of data, used to describe the shape of the data distribution.

Skewed

Describes a distribution of data that is asymmetrical, with a longer tail on one side of the central peak than on the other.

Same-Sex Marriage

A legally recognized marriage between two individuals of the same sex.