Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2010, and an additional 10% on January 1, 2011. Total annual amortization of $6,000 relates to the first acquisition. George reports the following figures for 2011:
Without regard for this investment, Keefe independently earns $300,000 in net income during 2011.
All net income is earned evenly throughout the year.
What is the controlling interest in consolidated net income for 2011?
A) $380,000.
B) $375,200.
C) $375,800.
D) $376,000.
E) $400,000.
Correct Answer:
Verified
Q21: When a parent uses the acquisition method
Q23: When consolidating a subsidiary that was acquired
Q24: When a subsidiary is acquired sometime after
Q25: When a parent uses the equity method
Q30: Royce Co. acquired 60% of Park Co.
Q31: On January 1, 2010, Palk Corp. and
Q35: On January 1, 2010, Palk Corp. and
Q36: On January 1, 2010, Palk Corp. and
Q37: Royce Co. acquired 60% of Park Co.
Q38: All of the following statements regarding the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents