Patch Corporation purchased land from Sub1 Corporation for $350,000 on December 3, 20X5. This purchase followed a series of transactions between Patch-controlled subsidiaries. On January 23, 20X5, Sub3 Corporation purchased the land from a nonaffiliate for $240,000. It sold the land to Sub2 Company for $220,000 on July 15, 20X5, and Sub2 sold the land to Sub1 for $305,000 on September 5, 20X5. Patch has control of the following companies: Subsidiary Level of Ownership20X5 Net Income Sub3 60 percent $60,000 Sub2 90 percent $140,000 Sub1 70 percent $90,000 Patch reported income from its separate operations of $345,000 for 20X5.Based on the preceding information, what should be the amount of income assigned to the controlling shareholders in the consolidated
income statement for 20X5?
A. $110,000
B. $525,000
C. $635,000
D. $474,000
Answer: D
You might also like to view...
Vladimir Constructions contracted to build the Petersons a house for $50,000. When Vladimir began digging the foundation, it hit bedrock, which was highly unusual in that area. Vladimir told the Petersons that it required an extra $5,000 to build the house. The Petersons agreed, but when the house was done, refused to pay Vladimir any more than the original contract price. What can be the outcome if Vladimir sues the Petersons for the extra $5,000 and why?
What will be an ideal response?
Which of the following statements is true?
A) The direct materials purchases budget is determined from the direct labor budget. B) The sales budget is the only budget based on an estimate of customer demand. C) The capital expenditures budget are prepared from the production budget. D) The selling and administrative expense budget is input into the forecasted cost of goods sold.
Assume that the risk-free rate, rRF, increases but the market risk premium, (rM - rRF), declines with the net effect being that the overall required return on the market, rM, remains constant. Which of the following statements is CORRECT?
A. The required return of all stocks will increase by the amount of the increase in the risk-free rate. B. The required return will decline for stocks that have a beta less than 1.0 but will increase for stocks that have a beta greater than 1.0. C. Since the overall return on the market stays constant, the required return on each individual stock will also remain constant. D. The required return will increase for stocks that have a beta less than 1.0 but decline for stocks that have a beta greater than 1.0. E. The required return of all stocks will fall by the amount of the decline in the market risk premium.
The _______ module performs end-to-end encryption and obtains session keys on behalf of users
A. PKM B. RCM C. SSM D. CCM