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. At what amount will the gain on sale of building appear under consolidated/group income statement of Marinette and Adrian what the year 2019 should be a. 0 b. 5,000 c. 15,000 d. 20,000
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. At what amount will the gain on sale of building appear under consolidated/group income statement of Marinette and Adrian what the year 2019 should be a. 0 b. 5,000 c. 15,000 d. 20,000
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.
At what amount will the gain on sale of building appear under consolidated/group income statement of Marinette and Adrian what the year 2019 should be
a. 0 b. 5,000 c. 15,000 d. 20,000
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