Assume on January 1,2018, a parent company acquired a 75% interest in a subsidiary's voting...
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Assume on January a parent company acquired a interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled their reported book values. On January the subsidiary purchased a building for $ The building has a useful life of years and is depreciated on a straightline basis with no salvage value. On January the subsidiary sold the building to the parent for $ The parent estimated that the building had a sixyear remaining useful life and no salvage value. The parent also uses the straightline method of amortization. For the year ending December the parent's "standalone" income ie net income before recording any adjustments related to preconsolidation investment accounting is $ The subsidiary's recorded net income is $ Based on this information, determine the balance for Income from Equity investment on parent's preconsolidations books preceding consolidation: Select one: a $ b $ C $ d $ 
Assume on January a parent company acquired a interest in a subsidiary's voting common stock. On the date of acquisition, the fair
value of the subsidiary's net assets equaled their reported book values. On January the subsidiary purchased a building for $ The
building has a useful life of years and is depreciated on a straightline basis with no salvage value. On January the subsidiary sold the
building to the parent for $ The parent estimated that the building had a sixyear remaining useful life and no salvage value. The parent also
uses the straightline method of amortization. For the year ending December the parent's "standalone" income ie net income before
recording any adjustments related to preconsolidation investment accounting is $ The subsidiary's recorded net income is $
Based on this information, determine the balance for Income from Equity investment on parent's preconsolidations books preceding consolidation:
Select one:
a $
b $
C $
d $
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