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Parent Imperial Corporation acquired a 90% interest in Sub Corporation in 20X0 when Sub's book values were equivalent to fair values. Sub-sold equipment with a
Parent Imperial Corporation acquired a 90% interest in Sub Corporation in 20X0 when Sub's book values were equivalent to fair values. Sub-sold equipment with a book value of $80,000 to Parent for $130,000 on January 1, 20X1. The parent fully depreciates the equipment over four years by using the straight-line method. Sub's reported net income for 20X1 was $320,000. Parent's 20X1 income from Sub was:
Select one:
a.
$249,250
b.
$250,500
c.
$254,250
d.
$288,000
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