Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
64. 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, 2011 follows:
What is Gamma's accrual-based income for 2011?
65. 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, 2011 follows:
What is Beta's accrual-based income for 2011?
66. 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, 2011 follows:
What is Alpha's accrual-based income for 2011?
67. 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, 2011 follows:
What is the non-controlling interest in Gamma's income for 2011?
68. 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, 2011 follows:
What is the total non-controlling interest in the subsidiaries' income for 2011?
69. 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:
Which of the following statements is true?
70. 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 Pi's accrual-based income for 2011?
71. 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 Sigma's accrual-based income for 2011?
72. 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?
73. 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 the non-controlling interest in Pi's income for 2011?
74. 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 the non-controlling interest in Sigma's income for 2011?
75. 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 the total non-controlling interest in the subsidiaries' income for 2011?
76. Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess
total fair value over book value was $75,000. Stance holds 10 percent of the
voting stock of Paris. The payment for that investment was in excess of book
value and fair value by $15,000. Any excess fair value is assigned to trademarks
to be amortized over a 10-year period. During the current year, Paris reported
operating income of $200,000 and dividend income from Stance of $20,000. At the
same time, Stance reported operating income of $40,000 and dividend income
from Paris of $5,000.
What will be reported as the non-controlling interest in Stance's net income?
77. Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess
total fair value over book value was $75,000. Stance holds 10 percent of the
voting stock of Paris. The payment for that investment was in excess of book
value and fair value by $15,000. Any excess fair value is assigned to trademarks
to be amortized over a 10-year period. During the current year, Paris reported
operating income of $200,000 and dividend income from Stance of $20,000. At the
same time, Stance reported operating income of $40,000 and dividend income
from Paris of $5,000.
What is consolidated net income?
78. Paris, Inc. owns 80 percent of the voting stock of Stance, Inc. The excess
total fair value over book value was $75,000. Stance holds 10 percent of the
voting stock of Paris. The payment for that investment was in excess of book
value and fair value by $15,000. Any excess fair value is assigned to trademarks
to be amortized over a 10-year period. During the current year, Paris reported
operating income of $200,000 and dividend income from Stance of $20,000. At the
same time, Stance reported operating income of $40,000 and dividend income
from Paris of $5,000.
What is Paris' share of consolidated net income?
79. Reggie, Inc. owns 70 percent of Nancy Corporation. During the current
year, Nancy reported earnings before tax of $100,000 and paid a dividend of
$30,000. The income tax rate for both companies is 30 percent. What deferred
income tax liability arising in the current year must be recognized in the
consolidated balance sheet?
80. Pear, Inc. owns 80 percent of Apple Corporation. During the current year,
Apple reported earnings before tax of $400,000 and paid a dividend of $120,000.
The income tax rate for each company is 40 percent and separate tax returns are
prepared. What deferred income tax liability arising this year must be recognized
in the consolidated balance sheet?
81. Dean, Inc. owns 90 percent of Ralph, Inc. During the current year, Dean
sold merchandise costing $80,000 to Ralph for $100,000. At the end of the year,
30 percent of this merchandise was still on hand. The tax rate is 30 percent.
Assuming that separate income tax returns are being filed, what deferred income
tax asset is created?
82. Dean, Inc. owns 90 percent of Ralph, Inc. During the current year, Dean
sold merchandise costing $80,000 to Ralph for $100,000. At the end of the year,
30 percent of this merchandise was still on hand. The tax rate is 30 percent.
Assuming that a consolidated income tax return is being filed, what deferred
income tax asset is created?
83. Tate, Inc. owns 80 percent of Jeffrey, Inc. During the current year, Jeffrey
sold merchandise costing $60,000 to Tate for $75,000. At the end of the year, 10
percent of this merchandise was still being held. The tax rate is 30 percent.
Assuming that separate income tax returns are being filed, what deferred income
tax asset is created?
