Delta Corporation owns 90 percent of Sigma Company, and Sigma owns 90 percent of Pi, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows: What is Pi's accrual-based income for 2013?

Question

Delta Corporation owns 90 percent of Sigma Company, and Sigma owns 90 percent of Pi, Inc. all of which are domestic corporations. Information for the three companies for the year ending December 31, 2013 follows:  What is Pi's accrual-based income for 2013?

Quizplus · Accepted Answer

Operating Income ($200,000) - Unrealized I/E Gains ($8,000) = Sub's Accrual Income ($192,000)

Delta Corporation Owns 90 Percent of Sigma Company, and Sigma