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

question 105

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 it purchased from Stark in 2010 for $92,000 in 2012.
-Compute income from Stark reported on Parker's books for 2011.

• A) $185,000.
• B) $157,500.
• C) $166,500.
• D) $162,000.
• E) $180,000.

---

Definitions:

Imagery

The use of descriptive language to create pictures in the mind or the visualization of scenes or objects.

Bicycle

A human-powered vehicle with two wheels attached to a frame, one behind the other, propelled by pedals.

Cigarette

A narrow cylinder of finely cut tobacco rolled in paper, intended for smoking.

Short-Term Memory

The capacity for holding a small amount of information in the mind in an active, readily available state for a short period.