EM owns 30% of MOCK's share capital. During the year to 31 December 2011, MOCK sold inventories at transfer price of $2,000,000 to JEM, of which 40% were still held in inventory of JEM at the year end. MOCK applies a mark-up of 25% on all goods sold. MOCK reported a net profit of $500,000 for year ended 31 December 2011. MOCK is JEM's only associate. What is share of associate's net profit after tax in JEM's consolidated profit or loss statement for year ended 31 December 2011? PLEASE PROVIDE EXPLANTION. A) $150,000 B) $102,000 C) $38,000 D) $97,000 E) None of the above.

Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period,the two companies individually reported the following income (exclusive of any investmentincome): Lake $ 390,000 Boxwood $ 100,000 Lake paid a $55,000 cash dividend during the current year, and Boxwood distributed $5,000.Boxwood sells inventory to Lake each period. Intra-entity gross profits of $24,100 were present inLake's beginning inventory for the current year, and its ending inventory carried $38,100 in intraentity gross profits.View each of the following questions as an independent situation. The effective tax rate for bothcompanies is 21 percent.a. If Lake owns a 60 percent interest in Boxwood, what total income tax expense must be reportedon a consolidated income statement for this period? (Round the intermediate calculationsand final answers to the nearest dollar amount.)b. If Lake owns a 60 percent interest in Boxwood, what total amount of income taxes must be paidby…

On January 1, 2016, Halstead, Inc., purchased 75,000 shares of Sedgwick Company common stock for $1,480,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill.Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period.On July 1, 2018, Halstead sells 12,000 shares of this investment for $25 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence.Determine the amounts that would appear on Halstead’s 2018 income statement relating to its ownership and partial sale of its investment in Sedgwick’s common stock.

Godo