Choose the correct.Diamond Company owns 80 percent of Emerald and Emerald owns 90 percent of Sapphire, Inc. Separate operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Sapphire’s income is a $50,000 intra-entity gain on transfers to Emerald still in Emerald’s possession. Diamond Emerald Sapphire Separate operating income $348000 $228000 $21000 What is Diamond’s accrual-based net income for the year?a. $658,400b. $674,400c. $666,800d. $645,600
Choose the correct.Diamond Company owns 80 percent of Emerald and Emerald owns 90 percent of Sapphire, Inc. Separate operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Sapphire’s income is a $50,000 intra-entity gain on transfers to Emerald still in Emerald’s possession. Diamond Emerald Sapphire Separate operating income $348000 $228000 $21000 What is Diamond’s accrual-based net income for the year?a. $658,400b. $674,400c. $666,800d. $645,600
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 22PC
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Choose the correct.Diamond Company owns 80 percent of Emerald and Emerald owns 90 percent of Sapphire, Inc. Separate operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Sapphire’s income is a $50,000 intra-entity gain on transfers to Emerald still in Emerald’s possession.
Diamond | Emerald | Sapphire | |
Separate operating income |
$348000 | $228000 |
$21000 |
What is Diamond’s accrual-based net income for the year?
a. $658,400
b. $674,400
c. $666,800
d. $645,600
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