Beagle Co. owned 80% of Maroon Corp. Maroon owned 90% of Eckston Inc. Operating income totals for 2013 are shown below; these figures contained no investment income. Amortization expense was not required by any of these acquisitions. Included in Eckston's operating income was a $56,000 unrealized gain on intra-entity transfers to Maroon. The accrual-based income of Eckston Inc. is calculated to be

Question

Beagle Co. owned 80% of Maroon Corp. Maroon owned 90% of Eckston Inc. Operating income totals for 2013 are shown below; these figures contained no investment income. Amortization expense was not required by any of these acquisitions. Included in Eckston's operating income was a $56,000 unrealized gain on intra-entity transfers to Maroon.  The accrual-based income of Eckston Inc. is calculated to be

Quizplus · Accepted Answer

Operating Inc ($280,000) - Unrealized I/E Trans ($56,000) = Accrual Income ($224,000)

Beagle Co Owned 80% of Maroon Corp