Blue Corporation holds 70 percent of Black Company's voting common stock. On January 1, 2003, Black paid $500,000 to acquire a building with a 10-year expected economic life. Black uses straight-line depreciation for all depreciable assets. On December 31, 2008, Blue purchased the building from Black for $180,000. Blue reported income, excluding investment income from Black, of $140,000 and $162,000 for 2008 and 2009, respectively. Black reported net income of $30,000 and $45,000 for 2008 and 2009, respectively. 28. Based on the preceding information, the amount to be reported as consolidated net income for 2008 will be: A. $190,000. B. $170,000. C. $175,000. D. $150,000. 29. Based on the preceding information, the amount of income assigned to the controlling shareholders in the consolidated income statement for 2008 will be: A. $190,000. B. $170,000. C. $175,000. D. $150,000. 30. Based on the preceding information, the amount to be reported as consolidated net income for 2009 will be: A. $207,000. B. $202,000. C. $212,000. D. $190,000. 31. Based on the preceding information, the amount of income assigned to the controlling shareholders in the consolidated income statement for 2009 will be: A. $207,000. B. $202,000. C. $212,000. D. $190,000.
Blue Corporation holds 70 percent of Black Company's voting common stock. On January 1, 2003, Black paid $500,000 to acquire a building with a 10-year expected economic life. Black uses straight-line depreciation for all depreciable assets. On December 31, 2008, Blue purchased the building from Black for $180,000. Blue reported income, excluding investment income from Black, of $140,000 and $162,000 for 2008 and 2009, respectively. Black reported net income of $30,000 and $45,000 for 2008 and 2009, respectively. 28. Based on the preceding information, the amount to be reported as consolidated net income for 2008 will be: A. $190,000. B. $170,000. C. $175,000. D. $150,000. 29. Based on the preceding information, the amount of income assigned to the controlling shareholders in the consolidated income statement for 2008 will be: A. $190,000. B. $170,000. C. $175,000. D. $150,000. 30. Based on the preceding information, the amount to be reported as consolidated net income for 2009 will be: A. $207,000. B. $202,000. C. $212,000. D. $190,000. 31. Based on the preceding information, the amount of income assigned to the controlling shareholders in the consolidated income statement for 2009 will be: A. $207,000. B. $202,000. C. $212,000. D. $190,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blue Corporation holds 70 percent of Black Company's voting common stock. On
January 1, 2003, Black paid $500,000 to acquire a building with a 10-year expected
economic life. Black uses straight-line depreciation for all depreciable assets. On
December 31, 2008, Blue purchased the building from Black for $180,000. Blue
reported income, excluding investment income from Black, of $140,000 and $162,000
for 2008 and 2009, respectively. Black reported net income of $30,000 and $45,000 for
2008 and 2009, respectively.
28. Based on the preceding information, the amount to be reported as consolidated net
income
for 2008 will be:
A. $190,000.
B. $170,000.
C. $175,000.
D. $150,000.
29. Based on the preceding information, the amount of income assigned to the
controlling shareholders in the consolidated income statement for 2008 will be:
A. $190,000.
B. $170,000.
C. $175,000.
D. $150,000.
30. Based on the preceding information, the amount to be reported as consolidated net
income for 2009 will be:
A. $207,000.
B. $202,000.
C. $212,000.
D. $190,000.
31. Based on the preceding information, the amount of income assigned to the
controlling shareholders in the consolidated income statement for 2009 will be:
A. $207,000.
B. $202,000.
C. $212,000.
D. $190,000.
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