Primer Company Acquired an 80% Interest in SealCoat Company on January

question 2

Multiple Choice

Primer Company acquired an 80% interest in SealCoat Company on January 1, 2013, for $450,000 cash when SealCoat Company had common stock of $250,000 and retained earnings of $250,000.All excess was attributable to plant assets with a 10-year life.SealCoat Company made $50,000 in 2013 and paid no dividends.Primer Company's separate income in 2013 was $625,000.The controlling interest in consolidated net income for 2013 is:

• A)$675,000.
• B)$665,000.
• C)$660,000.
• D)$625,000.

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Definitions:

Full-Service

A type of service that provides comprehensive coverage of needs or requirements in a particular area, offering a wide range of services or features.

Rack Jobber

A company that provides and manages inventory for retail shelves, often specializing in music, magazines, books, or electronics, and retaining ownership until items are sold.

Consignment

An arrangement where goods are left with a third party to sell, but the ownership remains with the supplier until the goods are sold.

General Merchandise

A category of products that includes a wide variety of items, typically found in a department store or retail outlet, not limited to any specific category.