PLEASE SHOW ME THE STEPS TO GET THE ANSWERS BELOW. Gargiulo Company,...
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PLEASE SHOW ME THE STEPS TO GET THE ANSWERS BELOW.
Gargiulo Company, a 90% owned subsidiary of Posto Corporation, sells inventory to Posto at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1,2010. 2010 2011 $8,000 $12,000 $15.000 4,000 2012 Purchases by Posito Ending inventory on Posito's books 1,200 3,000 Assume the equity method is used. The following data are available pertaining to Gargiulo's, ncome and dividends 2011 $70,000 $85.000 $94,000 10,000 10,000 5,000 2010 2012 Gargiulo's net income Dividends paid by Gargiulo 51. Compute the equity in earnings of Gargiulg reported on Posito's books for 2011. A. $76,500. B. $77,130. C. $75,870. D. $75,600. E. $75,800. 52. 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
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