How much would be reported as consolidated net income

Assignment Help Accounting Basics
Reference no: EM133042121

Question - Pappy Co. owns 80% of Son Inc. During the current year, the following intercompany transactions took place:

Son paid Pappy $48,000 for rent of office space.

Pappy sold Son $100,000 of inventory with a gross margin of 20%. At year end, Son had sold all the goods to unrelated parties.

On their separate entity financial statements, Pappy reported net income of $875,000 and Son reported net income of $650,000.

Based on the information provided, how much would be reported as consolidated net income?

a) $1,377,000

b) $1,457,000

c) $1,505,000

d) $1,525,000

Reference no: EM133042121

Questions Cloud

Determine the annual payments on this loan : You will pay off in annual payments over five years. Determine the annual payments on this loan and complete the amortisation table
Discussion of similarities and differences of software tools : Introduction to the service-oriented architecture and framework of three software tools: IBM WebSphere, Microsoft BizTalk, and Oracle Fusion
What will the after-tax salvage value : You just purchased some equipment that is classified as 5-year property for MACRS. The equipment costs $87,600. What will the after-tax salvage value
Determine the value of each installment : The balance is to be paid in 20 equal installments. Determine the value of each installment if the money is worth 7.5% per annum compounded continuously
How much would be reported as consolidated net income : Pappy reported net income of $875,000 and Son reported net income of $650,000. How much would be reported as consolidated net income
What is the principal behind the growth share matrix : What is the principal behind the "growth share matrix"? What is the advantage of this process? Give an example of a "question mark" company.
How did the industrial revolution change society : How did the Industrial Revolution change society - explain how it highlights the main ideas of the romantic period and the ideas of counter-enlightenment though
How the function of leading enhances the manager : How the function of leading enhances the manager's ability to influence and motivate people toward the attainment of organizational goals Referring to Case for
Explain a brief activity of amazon company : Question 1: Explain a brief activity of Amazon Company Question 2: Explain the major activities of any Union in any Organization.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd