Wyfker Company and Mularkey Company have separate incomes of $38,500 and $42,500,respectively.They had intercompany purchases and sales of $15,000 and intercompany interest of $1,500.Consolidated net income would be

Question

Quizplus · Accepted Answer

Consolidated net income would be calculated as:

Total Income - Intercompany Transactions + Intercompany Interest

Total Income = $38,500 + $42,500 = $81,000
Intercompany Transactions = $15,000
Intercompany Interest = $1,500

Consolidated Net Income = $81,000 - $15,000 + $1,500 = $67,500

Therefore, the correct answer is B.

Wyfker Company and Mularkey Company Have Separate Incomes of $38,500