Placer Corporation acquired 80 percent of Billings Company's voting common stock on January 1, 20X4. Placer and

Question:

Placer acquired 80 percent of Billings Company's voting on January 1, 20X4. Placer and Billings reported total revenue of $410,000 and $200,000 and total expenses of $320,000 and $150,000, respectively, for the year ended December 31, 20X4.

Required
Determine the amount of total revenue, total expense, and net income to be reported in the for 20X4 under the following consolidation alternatives:
a. Entity theory.
b. Parent company theory.
c. Proprietary theory.
d. Current accounting practice.

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