The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest of each company is outlined below. 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. What is the Consolidated Net Income for the year attributable to the shareholders of A Inc.?
A) $1,510,000.
B) $1,796,125.
C) $1,817,500.
D) $2,170,000.

Question

The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest of each company is outlined below.  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. What is the Consolidated Net Income for the year attributable to the shareholders of A Inc.?
A) $1,510,000. 
B) $1,796,125. 
C) $1,817,500. 
D) $2,170,000.

Quizplus · Accepted Answer

The Answer of The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest of each company is outlined below.  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. What is the Consolidated Net Income for the year attributable to the shareholders of A Inc.?
A) $1,510,000. 
B) $1,796,125. 
C) $1,817,500. 
D) $2,170,000.

The Following Information Pertains to the Shareholdings of an Affiliated