A Corporation Had Net Income of $50,000 in 2012 and $60,000

question 13

Multiple Choice

A Corporation had net income of $50,000 in 2012 and $60,000 in 2013, excluding any income from its investment in B Company. B Company had net income of $30,000 in 2012 and $40,000 in 2013. On January 1, 2013, A Corporation acquired all of the outstanding common shares of B Company for a cash payment of $300,000. Assume that there was no acquisition differential on this business combination. What net income would A Corporation report for 2013 in its comparative consolidated financial statements at the end of 2013?

• A) $40,000.
• B) $60,000.
• C) $80,000.
• D) $100,000.

---

Definitions:

Minimizing Union Control

Strategies or practices implemented by companies to reduce the influence and power of labor unions in workplace decisions and policies.

Legal Fees

Legal fees are charges for the advice and services provided by lawyers, including consultation, representation in court, and the preparation of legal documents.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, impacting organizational knowledge and continuity.

Moonlighting Unethically

Engaging in secondary employment that conflicts with one's primary job duties or interests, violating ethical or contractual obligations.