On January 1,2010,a parent company purchased 100 percent of the stock in a subsidiary.On January 1,2010,no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.On December 31,2010,the two companies report the following data: What is the consolidated net income for the year ended December 31,2010?
A)$0
B)$50 million
C)$100 million
D)$150 million

Question

On January 1,2010,a parent company purchased 100 percent of the stock in a subsidiary.On January 1,2010,no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.On December 31,2010,the two companies report the following data:  What is the consolidated net income for the year ended December 31,2010?
A)$0 
B)$50 million 
C)$100 million 
D)$150 million

Quizplus · Accepted Answer

The Answer of On January 1,2010,a parent company purchased 100 percent of the stock in a subsidiary.On January 1,2010,no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.On December 31,2010,the two companies report the following data:  What is the consolidated net income for the year ended December 31,2010?
A)$0 
B)$50 million 
C)$100 million 
D)$150 million

On January 1,2010,a Parent Company Purchased 100 Percent of the Stock