On 5/1/06, Podex acquired 100% of Sodex's outstanding common stock in a business combination. Both companies have a December 31 year-end. Selected information for each company follows:
Required:
a. Determine the parent's net income for 2006 under the equity method.
b. Determine the parent's net income for 2006 under the cost method.
c. Determine the consolidated net income for 2006.

Question

On 5/1/06, Podex acquired 100% of Sodex's outstanding common stock in a business combination. Both companies have a December 31 year-end. Selected information for each company follows:
  Required:
a. Determine the parent's net income for 2006 under the equity method.
b. Determine the parent's net income for 2006 under the cost method.
c. Determine the consolidated net income for 2006.

Quizplus · Accepted Answer

The Answer of On 5/1/06, Podex acquired 100% of Sodex's outstanding common stock in a business combination. Both companies have a December 31 year-end. Selected information for each company follows:
  Required:
a. Determine the parent's net income for 2006 under the equity method.
b. Determine the parent's net income for 2006 under the cost method.
c. Determine the consolidated net income for 2006.

On 5/1/06, Podex Acquired 100% of Sodex's Outstanding Common Stock