Alpha Corporation owns 100 percent of Beta Company, and Beta owns 80 percent of Gamma, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows: What is Alpha's accrual-based income for 2013?

Question

Alpha Corporation owns 100 percent of Beta Company, and Beta owns 80 percent of Gamma, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows:  What is Alpha's accrual-based income for 2013?

Quizplus · Accepted Answer

Parent's Operating Income ($300,000) - Unrealized I/E Gains ($12,000) + First Sub's Accrual Income ($276,800) = Parent's Accrual Income ($564,800)

Alpha Corporation Owns 100 Percent of Beta Company, and Beta