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, 2011 follows:
-What is Delta's accrual-based income for 2011?

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, 2011 follows: 
-What is Delta's accrual-based income for 2011?

Quizplus · Accepted Answer

Delta's accrual-based income for 2011 is $1,091,520. This is calculated by adding the net income of $1,000,000 to the depreciation and amortization expense of $91,520.

Delta Corporation Owns 90 Percent of Sigma Company, and Sigma