LaFevor Co

question 83

Multiple Choice

LaFevor Co. acquired 70% of the common stock of Dean Corp. on August 1, 2022. For 2022, Dean reported revenues of $960,000 and expenses of $780,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $21,000.What is the effect of including Dean in consolidated net income for 2022?

• A) $8,750.
• B) $66,250.
• C) $75,000.
• D) $126,000.
• E) $159,000.