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

question 35

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 2012 in its comparative consolidated financial statements at the end of 2013?

• A) $30,000.
• B) $50,000.
• C) $80,000.
• D) $100,000.

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Definitions:

Philippe Pinel

A French physician recognized for his pioneering work in the treatment of the mentally ill, emphasizing humane approaches over confinement and brutality.

Brutal Treatments

Harsh or inhumane methods of dealing with a problem, often used in a historical context regarding medical or psychological treatments.

Sigmund Freud

Originating from Austria, this neurologist launched psychoanalysis, a therapeutic technique that addresses mental illnesses through discussions between a psychoanalyst and their patient.

Biopsychosocial Approach

An integrated perspective that considers biological, psychological, and social factors and their complex interactions in understanding health, illness, and health care delivery.