Yukon Co Acquired 75% Percent of the Voting Common Stock of of Ontario

question 121

Multiple Choice

Yukon Co. acquired 75% percent of the voting common stock of Ontario Corp. on January 1, 2011. During the year, Yukon made sales of inventory to Ontario. The inventory cost Yukon $260,000 and was sold to Ontario for $390,000. Ontario still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intercompany profit that should be eliminated in the consolidation process at the end of 2011 is

• A) $15,000.
• B) $20,000.
• C) $32,500.
• D) $30,000.
• E) $110,000.

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Definitions:

Antecubital Fossa

An anatomical term for the triangular area located on the anterior aspect of the elbow, where veins are commonly accessed for blood draw.

Median Cubital Vein

A superficial vein located in the cubital fossa that is often used for venipuncture or to place an intravenous catheter.

Cephalic Vein

A superficial vein running along the lateral aspect of the arm from the hand to the shoulder, commonly used for venipuncture.

Fasting Blood Glucose

The level of glucose (sugar) in the blood after an individual has not eaten for at least 8 hours, used to test for diabetes and pre-diabetes.