Question
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
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?
A. 31,250
B. 33,000
C. 48,750
D. 39,350
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SOLUTION The Correct Option is C 48750 Explanation According to the question Date ...
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Introduction to Financial Accounting
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
11th edition
978-0133251111, 013325111X, 0133251039, 978-0133251036
