Denber Co. acquired 60% of the common stock of Kailey Corp. on September 30, 2019. For 2019, Kailey reported revenues of $820,000 and expenses of $610,000, (excluding amortization related to the acquisition) all reflected evenly throughout the year, The annual amount of amortization related to this acquisition was $15,000. What is the effect of including Kailey in consolidated net income for 2019? А. 31,250 В. 33,000 C. 48,750 D. 39,350
Denber Co. acquired 60% of the common stock of Kailey Corp. on September 30, 2019. For 2019, Kailey reported revenues of $820,000 and expenses of $610,000, (excluding amortization related to the acquisition) all reflected evenly throughout the year, The annual amount of amortization related to this acquisition was $15,000. What is the effect of including Kailey in consolidated net income for 2019? А. 31,250 В. 33,000 C. 48,750 D. 39,350
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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