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Find Corp. is a joint arrangement in which Seek Inc. has a 20% interest. Although Find Corp. is an incorporated entity, it is accounted for
Find Corp. is a joint arrangement in which Seek Inc. has a 20% interest. Although Find Corp. is an incorporated entity, it is accounted for as a joint operation. A contractual agreement gives Seek proportionate rights (20%) to all of Finds' assets and proportionate responsibilities (20%) for all of Find's liabilities. The financial statements of both businesses as at December 31, 2020, include the following information: During 2020, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales. At the end of 2020 , Find's inventory contained $30,000 worth of merchandise During 2020, Seek sold merchandise totaling $120,000 to Find and recorded a gross profit of 50% on these sales. At the end of 2020 . Find's inventory contained $30,000 worth of merchandise purchased from Seek. Find also owed $50,000 to Seek at the end of 2020 . Both companies are subject to a 40% tax rate. What is the amount of miscellaneous liabilities that would appear on Seek's December 31, 2020 Balance Sheet? $240,000 $176,000 $230,000 $166,000
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