Stark Company, a 90% Owned Subsidiary of Parker, Inc

question 33

Multiple Choice

Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land purchased from Stark in 2010 for $92,000 in 2012. Compute income from Stark reported on Parker's books for 2010.

• A) $205,000.
• B) $200,000.
• C) $180,000.
• D) $175,500.
• E) $184,500.

---

Definitions:

Groupon

A website that offers users discounted gift certificates usable at local or national companies, focusing on group buying power to obtain deals.

Web App

A web application or web app is a client-server software application in which the client runs in a web browser.

Copyright Laws

Legal regulations that protect the rights of creators over their original works, preventing unauthorized copying, distribution, or modification.

Creative Commons

A nonprofit organization that provides free licenses allowing creators to legally share their work with the public under specified conditions.