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. 
Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends. 
Compute the equity in earnings of Gargiulo reported on Posito's books for 2012.
A) $84,600.
B) $84,375.
C) $83,925.
D) $84,825.
E) $84,850.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: Stark Company, a 90% owned subsidiary of
Q20: On January 1, 2011, Pride, Inc. acquired
Q21: Gargiulo Company, a 90% owned subsidiary of
Q22: McGraw Corp. owned all of the voting
Q24: Stiller Company, an 80% owned subsidiary of
Q25: Stark Company, a 90% owned subsidiary of
Q26: Gargiulo Company, a 90% owned subsidiary of
Q28: Virginia Corp. owned all of the voting
Q94: Which of the following statements is true
Q104: When comparing the difference between an upstream