_____ On 1/1/06 Panto acquired 80% of the outstanding common stock of Santo. On that date, Santo had the following equity balances:
The preferred stock has a call premium of $20,000 and cumulative dividends in arrears of $60,000. How much would appear in the parent's Equity in Net Income of Subsidiary account at the end of 2006 assuming that Santo reported $100,000 of net income for 2006?
A) $ -0-.
B) $64,000.
C) $80,000.
D) $100,000.
E) None of the above.

Question

_____ On 1/1/06 Panto acquired 80% of the outstanding common stock of Santo. On that date, Santo had the following equity balances:
 The preferred stock has a call premium of $20,000 and cumulative dividends in arrears of $60,000. How much would appear in the parent's Equity in Net Income of Subsidiary account at the end of 2006 assuming that Santo reported $100,000 of net income for 2006?
A) $ -0-. 
B) $64,000. 
C) $80,000. 
D) $100,000. 
E) None of the above.

Quizplus · Accepted Answer

The Answer of _____ On 1/1/06 Panto acquired 80% of the outstanding common stock of Santo. On that date, Santo had the following equity balances:
 The preferred stock has a call premium of $20,000 and cumulative dividends in arrears of $60,000. How much would appear in the parent's Equity in Net Income of Subsidiary account at the end of 2006 assuming that Santo reported $100,000 of net income for 2006?
A) $ -0-. 
B) $64,000. 
C) $80,000. 
D) $100,000. 
E) None of the above.

_____ on 1/1/06 Panto Acquired 80% of the Outstanding Common