In year B, Pellinore Co. buys some of the outstanding bonds of its subsidiary Sagramore Co. The resulting 'gain on constructive bond retirement and extinguishment' is 50. During year B, the interest elimination amount is 5. Also during year B, S has new unconfirmed interfirm losses of 30 and confirmations of previous interfirm losses of 20. S also has an interfirm gain of 25 in year B, but this amount is confirmed. P reports new unconfirmed interfirm losses of 40 and new unconfirmed interfirm gains of 15. S reports Net Income in year B of 650 and declares dividends on their common shares of 10. P owns 80% of S's common shares and reports Net Income and dividends of 1000 and 200, respectively. Total Consolidated Net Income is O a. 1000 b. 1225 O c. 1069 O d. 520
In year B, Pellinore Co. buys some of the outstanding bonds of its subsidiary Sagramore Co. The resulting 'gain on constructive bond retirement and extinguishment' is 50. During year B, the interest elimination amount is 5. Also during year B, S has new unconfirmed interfirm losses of 30 and confirmations of previous interfirm losses of 20. S also has an interfirm gain of 25 in year B, but this amount is confirmed. P reports new unconfirmed interfirm losses of 40 and new unconfirmed interfirm gains of 15. S reports Net Income in year B of 650 and declares dividends on their common shares of 10. P owns 80% of S's common shares and reports Net Income and dividends of 1000 and 200, respectively. Total Consolidated Net Income is O a. 1000 b. 1225 O c. 1069 O d. 520
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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