Search Company Is a 90% Owned Subsidiary of Passage Company

question 17

Multiple Choice

Search Company is a 90% owned subsidiary of Passage Company. On January 1, 2016, Search Company purchased for $680,000 bonds of Passage Company that had a carrying value of $725,000 (par value $700,000) . The bonds mature on December 31, 2017. Both companies use the straight-line method of amortization and have a December 31 year-end. The increase in 2016 consolidated income (i.e., income before subtracting noncontrolling interest) is:

• A) $45,000.
• B) $44,000.
• C) $54,000.
• D) $36,000.

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Definitions:

Descriptive Statistics

Statistical methods used to summarize and describe the main features of a dataset.

Statistical Methods

Techniques and processes used in the collection, analysis, interpretation, and presentation of numerical data.

Tools And Techniques

Various methodologies, equipment, or strategies used to accomplish a specific task or activity.

Francis Galton

A 19th-century English polymath who made significant contributions to fields like statistics, psychology, and anthropology.