11) On January 1, 2012 Peter Inc. acquired 80% of the outstanding common stock of Sam Co. for $540,000. Sam's net assets had a book value $600,000 on that date although equipment with a ten-year life having a book value of $10,000 had a fair market value of $30,000. Any remaining allocation is to go to goodwill. On December 31, 2012, Sam reports revenues of $125,000 and expenses of $50,000 while Peter reports operating revenue of $400,000 and expenses of $250,000. What is the consolidated net income for 2012? Select one: O a. $225,000 O b. $228,800 O c. $223,400 O d. $255,300

11) On January 1, 2012 Peter Inc. acquired 80% of the outstanding common stock of Sam Co. for $540,000. Sam's net assets had a book value $600,000 on that date although equipment with a ten-year life having a book value of $10,000 had a fair market value of $30,000. Any remaining allocation is to go to goodwill. On December 31, 2012, Sam reports revenues of $125,000 and expenses of $50,000 while Peter reports operating revenue of $400,000 and expenses of $250,000. What is the consolidated net income for 2012? Select one: O a. $225,000 O b. $228,800 O c. $223,400 O d. $255,300

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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