James Company purchased 100% of the outstanding stock of Hardware Corporation on July 1, 2016 for $1,200,000. Hardware reports annual revenue of $225,000 and expenses of $180,000. The revenues and expenses were evenly spread throughout the year. What amount of revenues and expenses earned by Hardware, should James report on its consolidated income statement prepared on December 31, 2016 subsequent to the date of acquisition? Revenues $112,500; Expenses $90,000 Revenues $157,500; Expenses $126,000 Revenues $225,000; Expenses $180,000 Revenues and expenses of subsidiary are not reported. Revenues $67,500; Expenses $54,000

James Company purchased 100% of the outstanding stock of Hardware Corporation on July 1, 2016 for $1,200,000. Hardware reports annual revenue of $225,000 and expenses of $180,000. The revenues and expenses were evenly spread throughout the year. What amount of revenues and expenses earned by Hardware, should James report on its consolidated income statement prepared on December 31, 2016 subsequent to the date of acquisition? Revenues $112,500; Expenses $90,000 Revenues $157,500; Expenses $126,000 Revenues $225,000; Expenses $180,000 Revenues and expenses of subsidiary are not reported. Revenues $67,500; Expenses $54,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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