SB Delta Corporation owns 90 percent of Sigma C...

Delta Corporation owns 90 percent of Sigma Company, and Sigma owns 90 percent of Pi, Inc., all of which are domestic corporations. There are no excess amortizations associated with any of the acquisitions. Information for the three companies for the year ending December 31, 2018 follows:

	Delta			Sigma			Pi
Separate company net income	$	600,000		$	400,000		$	200,000
Intra-entity gross profits on transfers of inventory which remain with the buyer at the reporting date and are included in operating income above		24,000			0			8,000

MC Qu. 71 What is Delta's accrual-based net income for...

What is Deltas accrual-based net income for 2018?

Multiple Choice

• $1,091,520.

• $1,115,520.

• $1,168,000.

• $1,168,520.

• $1,200,000.

1,168,000 is WRONG