Labor contracts frequently provide for a suspension period before a discharge becomes effective

Common stockholders may assign a proxy, or the power to cast their ballot, only when majority voting is in place.

a. true b. false

On January 1, 2016, Parent Company purchased 90% of the common stock of Sub-A Company for $90,000 . On this date, Sub-A had common stock, other paid-in capital, and retained earnings of $10,000, $20,000, and $60,000 respectively

On January 1, 2017, Sub-A Company purchased 80% of the common stock of Sub-B Company for $64,000 . On this date, Sub-B Company had common stock, other paid-in capital, and retained earnings of $5,000, $30,000, and $40,000 respectively. Any excess of cost over book value on either purchase is due to a patent, to be amortized over ten years. Both Parent and Sub-A have accounted for their investments using the simple equity method. During 2017, Sub-B sold merchandise to Sub-A for $20,000, of which one-fourth is still held by Sub-B on December 31, 2017 . Sub-B's usual gross profit is 40%. During 2018, Sub-B sold more goods to Sub-A for $30,000, of which $10,000 is still on hand on December 31, 2018 . Required: Complete the Figure 8-9 worksheet for consolidated financial statements for 2018 .