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All Intercompany Investments Are Accounted for Using the Equity Method

Question 14

Multiple Choice

All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows: Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below: All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012? A) $1,510,000. B) $1,773,625. C) $1,796,125. D) $2,170,000. All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows: All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows: Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below: All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012? A) $1,510,000. B) $1,773,625. C) $1,796,125. D) $2,170,000. Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below: All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2012 were as follows: Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2012 are shown below: All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012? A) $1,510,000. B) $1,773,625. C) $1,796,125. D) $2,170,000. All companies are subject to a 25% tax rate. How much is A Inc.'s Consolidated Net Income for 2012?


A) $1,510,000.
B) $1,773,625.
C) $1,796,125.
D) $2,170,000.

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