QUESTION 5 The separate incomes (which do not include investment income) of Pic Corporation and Sil Corporation, its 80 percent- owned subsidiary, for 2011 were determined as follows (in thousands): Pic Sil Sales $800 $200 Less: Cost of sales 400 80 Gross profit 400 120 Other expenses 200 60 Separate incomes $200 $ 60 During 2011, Pic sold merchandise that cost $40,000 to Sil for $80,000, and at December 31, 2011, half of these inventory items remained unsold by Sil. How much is Consolidated net income? Question 4 and 5 are related. They are same question with different requirements. $240,000 $260,000 $500,000 $100,000 3 points

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QUESTION 6 Arnold, Beverly, and Carolyn are partners who share profits and losses 40:40:20, respectively, after Beverly, who manages the partnership, receives a bonus of 10 percent of income, net of the bonus. Partnership income for the year is $198,000. How much of the parternership income of the year will be allocated to Arnold? Question 6, 7 and 8 are related. They are same question with different requirements. $100,000 $72,000 $36,000 $18,000 3 points

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QUESTION 7 Arnold, Beverly, and Carolyn are partners who share profits and losses 40:40:20, respectively, after Beverly, who manages the partnership, receives a bonus of 10 percent of income, net of the bonus. Partnership income for the year is $198,000. How much of the parternership income of the year will be allocated to Beverly? Question 6, 7 and 8 are related. They are same question with different requirements. $100,000 $72,000 $36,000 $10,000