On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Cash 45,000 Accumulated Depreciation 28,000 Machine 70,000 Gain on Sale of Equipment 3,000 ?Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer.Based on the preceding information, consolidated net income for 20X9 will be:
A. $148,000.
B. $150,000.
C. $130,000.
D. $100,000.
Answer: A
You might also like to view...
Functional congruence refers to ______.
a. form over function b. function over form c. function complementing form d. function matching service environment
People in which cluster in the GLOBE studies exhibit forceful behaviors but are also supportive of their coworkers and treat men and women equally?
A. Latin Europe B. Middle East C. Southern Asia D. Eastern Europe
________ are used to protect the owner of the technology from people imitating the technology.
A. Switching costs B. Franchises C. Distributors D. Patents
Brio Motors Company produces a part that is used in the manufacture of one of its products
The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows: Direct materials $5 Direct labor (variable cost) 6 Variable manufacturing overhead 3 Fixed manufacturing overhead 4 Total cost $18 Finn Motors Company has offered to sell 6,000 units of the same part to Brio for $17.50 per unit. Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable, what should Brio do? What will be an ideal response