Gargiulo Company, a 90% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 25% gross profit rate. The following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo. Gargiulo was acquired on January 1, 2017. 201720182019Purchases by Posito$8,000 $12,000 $15,000 Ending inventory on Posito's books 1,200 4,000 3,000 ??Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.? 201720182019Gargiulo's net income$70,000 $85,000 $94,000 Dividends paid by Gargiulo 10,000 10,000 15,000 ?Compute the equity in earnings of Gargiulo reported on Posito's books for 2018.
A. $77,130.
B. $75,800.
C. $75,870.
D. $75,600.
E. $76,500.
Answer: C
You might also like to view...
In equity theory, employees are motivated to
A. work harder when they have more freedom. B. resolve feelings of injustice. C. correct themselves when they aren't working hard enough. D. blame others when they miss work or fail at tasks. E. work just hard enough to get what they want.
Debbie's is a specialty bakery that sees a huge volume of orders during the holiday season. The owner knows that orders triple during the three-month period and the current staff cannot handle the volume
What supply strategy can Debbie's use to handle the demand?
The first step in global channel planning is to get close to customers
Indicate whether the statement is true or false
What is the appropriate way to assess the internal consistency of a multi-item scale with sets of items designed to measure different aspects of a multi-dimensional construct?
What will be an ideal response?