P Corporation Acquired an 80% Interest in S Corporation Two

question 7

Multiple Choice

P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S.On January 2, 2014, S sold equipment with a five-year remaining life to P for a gain of $120,000.S reports net income of $600,000 for 2014 and pays dividends of $200,000.P's Equity from Subsidiary Income for 2014 is:

• A)$480,000.
• B)$384,000.
• C)$403,200.
• D)$576,000

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Definitions:

Monthly Rates

The amount or percentage per month used for calculating changes in financial or other measurements.

Annual Rates

Yearly percentages or quantities employed in various calculations, such as interest or growth rates.

Monthly Rates

Monthly quantifications or percentages, typically applied in scenarios like rent, subscription fees, or interest calculations.

Annual Rates

The amount or percentage over a year used for calculating changes in financial or other measurements.