Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000 and expenses of $630,000, not including its investment in Denber, and all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000.What is the effect of including Kailey in consolidated net income for 2019?
A. $33,000.
B. $60,000.
C. $39,000.
D. $55,000.
E. $31,000.
Answer: D
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