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On January 1,2010,a Parent Company Purchased 100 Percent of the Stock

Question 96

Multiple Choice

On January 1,2010,a parent company purchased 100 percent of the stock in a subsidiary.On January 1,2010,no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.On December 31,2010,the two companies report the following data: On January 1,2010,a parent company purchased 100 percent of the stock in a subsidiary.On January 1,2010,no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.On December 31,2010,the two companies report the following data: What is the consolidated net income for the year ended December 31,2010? A) $0 B) $50 million C) $100 million D) $150 million What is the consolidated net income for the year ended December 31,2010?


A) $0
B) $50 million
C) $100 million
D) $150 million

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