P Corporation Acquired an 80% Interest in S Corporation Two

question 28

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, 2017, S sold equipment with a five-year remaining life to P for a gain of $180,000. S reports net income of $900,000 for 2017 and pays dividends of $300,000. P's Equity from Subsidiary Income for 2017 is:

• A) $720,000.
• B) $576,000.
• C) $604,800.
• D) $864,000

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Definitions:

Increases

Describes an upward trend in numerical value or volume.

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