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

question 112

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 2011.

• A) $8,500.
• B) $8,570.
• C) $8,430.
• D) $8,400.
• E) $7,580.

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Definitions:

Synchronoscope

An instrument used to determine the exact point at which two alternating currents achieve synchronism, often used in the synchronization of generators.

Voltage

The electrical potential difference between two points in a circuit, which drives current flow.

Frequency

A measurement of how often a repeating event, such as a wave, occurs within a specified amount of time, typically measured in hertz (Hz).

Samuel Seabury

The first American Episcopal bishop, ordained in 1789, and a loyalist during the American Revolutionary War, known for his debates on the political, social, and religious issues of his time.