Purple, Inc

question 54

Multiple Choice

Purple, Inc., a domestic corporation, owns 100% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Purple also owns 40% of Green, Inc., a domestic corporation. Purple receives no distributions from any of these corporations. Which of these entities' net income are included in Purple's GAAP income statement for current year financial reporting purposes?

• A)Purple, Yellow, and Green.
• B)Purple, Blue, and Yellow.
• C)Purple, Blue, and Green.
• D)Purple, Blue, Yellow, and Green.

---

Definitions:

Milli-

A prefix in the metric system denoting a factor of one thousandth (0.001) of the unit stated.

Axill-

A prefix denoting a relationship to the armpit or underarm area.

Chem/o

A combining form used in the fields of chemistry or pharmacology indicating a relation to chemicals or chemistry.

Macr/o

A prefix in medical terminology indicating large or long.