All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows: Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below: All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012?
A) $1,510,000.
B) $1,773,625.
C) $1,796,125.
D) $2,170,000.

Question

All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows:  Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below:  All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012?
A) $1,510,000. 
B) $1,773,625. 
C) $1,796,125. 
D) $2,170,000.

Quizplus · Accepted Answer

The Answer of  All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows:  Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below:  All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012?
A) $1,510,000. 
B) $1,773,625. 
C) $1,796,125. 
D) $2,170,000.

All Intercompany Investments Are Accounted for Using the Equity Method