Income information for 2019 taken from the separate company financial statements of Marinette corporation and its 75% old subsidiary Adrian corporation is presented as follows Marinette Adrian Sales 1,000,000 460,0000 Gain on sale of Building 20,000 Dividend Income 75,000 Cost of Goods Sold -500,000 -260,000 Depreciation Expense -100,000 -60,000 Other Expense -200,000 -40,000 Net Income 295,000 100,000 Marinette gain on sale of building relates to a building with a book value of 40,000 and a 10 year remaining useful life that was sold to Adrian for 60,000 of January 1,2019. The consolidated group depreciation expense for 2019 should be a. 158,000 b. 160,000 c. 162,000 d. 180,000
Income information for 2019 taken from the separate company financial statements of Marinette corporation and its 75% old subsidiary Adrian corporation is presented as follows Marinette Adrian Sales 1,000,000 460,0000 Gain on sale of Building 20,000 Dividend Income 75,000 Cost of Goods Sold -500,000 -260,000 Depreciation Expense -100,000 -60,000 Other Expense -200,000 -40,000 Net Income 295,000 100,000 Marinette gain on sale of building relates to a building with a book value of 40,000 and a 10 year remaining useful life that was sold to Adrian for 60,000 of January 1,2019. The consolidated group depreciation expense for 2019 should be a. 158,000 b. 160,000 c. 162,000 d. 180,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Income information for 2019 taken from the separate company financial statements of Marinette corporation and its 75% old subsidiary Adrian corporation is presented as follows
| Marinette | Adrian | |
| Sales | 1,000,000 | 460,0000 |
| Gain on sale of Building | 20,000 | |
| Dividend Income | 75,000 | |
| Cost of Goods Sold | -500,000 | -260,000 |
| -100,000 | -60,000 | |
| Other Expense | -200,000 | -40,000 |
| Net Income | 295,000 | 100,000 |
Marinette gain on sale of building relates to a building with a book value of 40,000 and a 10 year remaining useful life that was sold to Adrian for 60,000 of January 1,2019.
The consolidated group depreciation expense for 2019 should be
a. 158,000 b. 160,000 c. 162,000 d. 180,000
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