Beagle Co. owned 80% of Maroon Corp. Maroon owned 90% of Eckston Inc. Separate company net incomes for 2018 are shown below; these figures contained no investment income. Amortization expense was not required by any of these acquisitions. Included in Eckston's operating income was a $56,000 gross profit on intra-entity transfers to Maroon. Beagle Co.Maroon Corp.Eckston Inc.Separate net income$420,000$280,000$280,000?The accrual-based income of Eckston Inc. is calculated to be
A. $221,000.
B. $224,000.
C. $234,000.
D. $246,000.
E. $211,000.
Answer: B
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