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

question 1

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. $$\begin{array} { l c r r } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 2 } \\\text { Purchases by Posito } & \$ 8,000 & \$ 12,000 & \$ 15,000 \\\text { Ending inventory on Posito's books } & 1,200 & 4,000 & 3,000\end{array}$$ Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. $\begin{array}{lrrr}&2010&2011&2012\\\text { Gargiulo's net income } & \$ 70,000 & \$ 85,000 & \$ 94,000 \\\text { Dividends paid by Gargiulo } & 10,000 & 10,000 & 15,000\end{array}$
-Compute the equity in earnings of Gargiulo reported on Posito's books for 2011.

• A) $76,500.
• B) $77,130.
• C) $75,870.
• D) $75,600.
• E) $75,800.

Comprehend Aristotle’s view on happiness (eudaimonia) and its relation to virtue.

Identify the role of moral values and actions in human flourishing according to Aristotle.

Recognize the limitations and criticisms of Aristotle's virtue ethics.

Understand how Aristotle’s theory is applied to ethical decision-making and character development.

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Interest Charged

The cost of borrowing money, calculated as a percentage of the principal amount on a loan or credit.

Semiannual Compounding

Interest calculation method where the interest is added to the principal twice a year, leading to compound interest growth.

Effective Rate

The equivalent annual interest rate when compounding at intervals different from annually. It reflects the total amount of interest paid or earned over a year.

Interest

Interest is the charge for borrowing money, typically expressed as an annual percentage rate.