Kings has a 40% joint operation interest in Fisher. Based on the following information, what amount will be presented for "revenues" on Kings' proportionately consolidated income statement?

Question

Quizplus · Accepted Answer

To determine Kings' proportionate revenue from Fisher, we need to multiply Fisher's total revenue by Kings' joint operation interest. 
Fisher's total revenue is $4,500 ($2,500 + $2,000). 
Kings' joint operation interest is 40%. 
Therefore, Kings' proportionate revenue from Fisher is $1,800 ($4,500 x 0.40). 
Thus, option B is correct.

Kings Has a 40% Joint Operation Interest in Fisher