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:

Lemonade

A sweetened beverage made from lemon juice, water, and sugar, often consumed as a refreshing drink.

Gallons

A unit of volume used primarily in the United States for measuring liquids, equivalent to 3.785 liters.

Meals

Prepared food items intended for consumption, typically encompassing breakfast, lunch, and dinner.

Gasoline

A flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.