Multiple Choice
The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest of each company is outlined 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. What is the Consolidated Net Income for the year attributable to the shareholders of A Inc.?
A) $1,510,000.
B) $1,796,125.
C) $1,817,500.
D) $2,170,000.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: On January 1, 2012, Hanson Inc. purchased
Q9: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2504/.jpg" alt=" A) Nil. B)
Q10: On January 1, 2012, Hanson Inc. purchased
Q11: Whine purchased 80% of the outstanding voting
Q14: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2504/.jpg" alt=" All intercompany investments
Q15: Whine purchased 80% of the outstanding voting
Q16: On January 1, 2012, Hanson Inc. purchased
Q17: A Inc. owns 80% of B's outstanding
Q17: The following information pertains to the shareholdings
Q18: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2504/.jpg" alt=" A) $84,000. B)