Hardford Corp. held 80% of Inglestone Inc. which, in turn, owned 80% of Jade Co. Operating income figures (without investment income) as well as unrealized upstream gains included in the income for the current year follow: The accrual-based income of Jade Co. is calculated to be

Question

Hardford Corp. held 80% of Inglestone Inc. which, in turn, owned 80% of Jade Co. Operating income figures (without investment income) as well as unrealized upstream gains included in the income for the current year follow:  The accrual-based income of Jade Co. is calculated to be

Quizplus · Accepted Answer

To calculate the accrual-based income of Jade Co, we need to add the operating income figures of Jade Co and the unrealized upstream gains from Inglestone Inc.

Operating income of Jade Co = $180,000 
Unrealized upstream gains from Inglestone Inc. = $16,000 
Total accrual-based income of Jade Co = $180,000 + $16,000 = $196,000

Therefore, the best choice is C.