The following information is used for the following two questions. Ping and Slazenger Company (its 90% owned affiliate) reported the following income information for year X1: Ping Slazenger Revenue 300,000 100,000 Cost of Sales 120,000 40,000 Selling, General, and Adm Expenses 40,000 20,000 Depreciation 20,000 10,000 Investment Income ? Total Net Income ? 30,000 During Year X1, Slazenger made sales of $20,000 to Ping. Slazengers Cost of Sales was $10,000. As of 12/31/X1, Ping had still owned 60% of the units acquired from Slazenger. Based on this information, how much Consolidated Income should Ping report? Select one: a. $140,000 b. $144,000 c. $146,000 d. $150,000 e. None of the Above

The next two questions are based on the following information: Assume that Meridian Company acquired 1,000 shares of of Slim Company's common stock for $10 per share on 1/1/X1 and adopted the fair value (FV) accounting method. On 1/1/X1, Slim had 10,000 shares outstanding and its equity book value included $50,000 Capital Stock and $50,000 of Retained Earnings. During year X1, Slim reported a $50,000 net income and paid dividends of $1 per share. on 12/31/X1, Slim's stock traded at $16 per share. How much investment income should Meridian recognize in year X1?

Select one:

a. $1,000

b. $5,000

c. $6,000

d. $7,000

e. None of the Above

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This question is a continuation of the previous question about Meridian and Slim. On 1/1/X2, Meridian purchased 5,000 shares of Slim stock for $17 per share and elected Meridian's CEO and CFO to Slim's Board of Directors. An appraisal of Slim's assets could not identify any asset groups that were mis-valued. During year X2, Slim reported earnings per common share of $6 and paid a dividend of $1 per share. On 12/31/X2, Slim stock traded at $21 per share. Based on this information, Meridian's investments in Slim should be reported at which of the following amounts on 12/31/X2?

Select one:

a. $125,000

b. $131,000

c. $132,000

d. $138,000

e. None of the Above