Alpha Corporation Owns 100% of Beta Company, and Beta Owns

question 119

Multiple Choice

Alpha Corporation owns 100% of Beta Company, and Beta owns 80% of Gamma, Inc., all of which are domestic corporations. There were no excess allocation values at the date of acquisition of the subsidiaries. Information for the three companies for the year ending December 31, 2021 follows: What is Beta's accrual-based net income for 2021?

• A) $200,000.
• B) $276,800.
• C) $280,000.
• D) $296,000.
• E) $300,000.

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Definitions:

Existential Instantiation

A logical rule inferring the existence of at least one instance of a predicate; used in proofs to show something exists.

Universal Instantiation

A principle in logic that allows for the deducing of a statement about a specific instance from a general statement that applies to all instances.

Universal Generalization

A form of deductive reasoning that concludes a general statement is true for all instances based on the observation of particular instances.

Quantifier Negation

The process of negating the quantifiers in a statement, such as changing "all" to "not all" or "some" to "none".