Question
?Pahm Corporation owns 80% of the outstanding voting common stok of Abussi Corporation, which was ?purchased for $60,000 over Abussi's book value. The excess purchase
?Pahm Corporation owns 80% of the outstanding voting common stok of Abussi Corporation, which was ?purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. ?Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased ?at book value. The separte net incomes of Pahm, Abussi, and Badock( excluding investment income) for the year ?are $200,000, $240,000, and $260,000, respecitvely. There were no fair value/book values differences in the assets ?and liabilities of Pahm, Abussi and Badock. ?Controlling interest share of consolidated net income of for the future year is ?A) $504,800 ?B) $516,800 C)$545,200 ?D)$557,200
Please help me. Thank you so much!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started