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The Net Incomes for Parent and Sub Inc for the Year

Question 23

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. Assuming Parent purchased 80% of Sub Inc. for $180,000; the Assets section of Parent's Consolidated Balance Sheet on the date of acquisition (August 1, 2012) would total what amount under the Entity Method? A) $552,000 B) $639,200 C) $651,000 D) $659,000 The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. Assuming Parent purchased 80% of Sub Inc. for $180,000; the Assets section of Parent's Consolidated Balance Sheet on the date of acquisition (August 1, 2012) would total what amount under the Entity Method? A) $552,000 B) $639,200 C) $651,000 D) $659,000 The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. Assuming Parent purchased 80% of Sub Inc. for $180,000; the Assets section of Parent's Consolidated Balance Sheet on the date of acquisition (August 1, 2012) would total what amount under the Entity Method?


A) $552,000
B) $639,200
C) $651,000
D) $659,000

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