11 what is pouch 39 s income from shenley for 2012 a 27 200 b 29 600 c 39 200 d 49 0 4307690

11) What is Pouch's income from Shenley for 2012?

A) $27,200

B) $29,600

C) $39,200

D) $49,000

12) Swamp Co., a 55%-owned subsidiary of Pond Inc., made the following entry to record a sale of merchandise to Pond:

All Swamp sales are at 125% of cost. One-fourth of this merchandise remained in the Pond's inventory at year-end. A working paper entry to eliminate unrealized profits from consolidated inventory would include a credit to Inventory in the amount of

A) $2,000.

B) $2,500.

C) $8,000.

D) $10,000.

13) The 2011 consolidated income statement showed cost of goods sold of

A) $500,000.

B) $516,000.

C) $532,000.

D) $660,000.

14) What is Pew's income from Sordid for 2011?

A) $32,000

B) $48,000

C) $60,000

D) $75,000

15) The 2011 consolidated income statement showed noncontrolling interest share of

A) $3,200.

B) $6,400.

C) $8,800.

D) $12,000.

16) On January 1, 2011, Plastam Industries acquired an 80% interest in Sparta Company to assure a steady supply of Sparta's inventory that Plastam uses in its own manufacturing businesses. Sparta sold 100% of its output to Plastam during 2011 and 2012 at a markup of 125% of Sparta's cost. Plastam had $12,000 of these items remaining in its inventory at December 31, 2012. If Plastam neglected to eliminate unrealized profits from all intercompany sales from Sparta, the inventory on the consolidated balance sheet at December 31, 2012 was

A) overstated by $1,920.

B) understated by $1,920.

C) overstated by $2,400.

D) understated by $2,400.

17) Consolidated cost of goods sold for Pelga and Subsidiary for 2012 were

A) $512,000.

B) $526,000.

C) $522,500.

D) $528,000.

18) What amount of unrealized profit did Pelga Company have at the end of 2012?

A) $10,000

B) $12,500

C) $50,000

D) $62,500

19) A parent company regularly sells merchandise to its 70%-owned subsidiary. Which of the following statements describes the computation of noncontrolling interest share?

A) The subsidiary's net income times 30%

B) (The subsidiary's net income × 30%) + unrealized profits in the beginning inventory – unrealized profits in the ending inventory

C) (The subsidiary's net income + unrealized profits in the beginning inventory – unrealized profits in the ending inventory) × 30%

D) (The subsidiary's net income + unrealized profits in the ending inventory – unrealized profits in the beginning inventory) × 30%

20) Shalles Corporation, a 80%-owned subsidiary of Pani Corporation, sold inventory items to its parent at a $48,000 profit in 2012. Pani resold one-third of this inventory to outside entities. Shalles reported net income of $200,000 for 2012. Noncontrolling interest share of consolidated net income that will appear in the income statement for 2012 is

A) $30,400.

B) $32,000.

C) $33,600.