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.

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Definitions:

Inputs

The resources used in the production of goods and services, including labor, raw materials, and capital.

Gigabyte Storage

Gigabyte storage refers to a digital storage capacity equivalent to approximately one billion bytes, often used to measure the size of memory or disk storage space.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding other inputs constant.

Labor Hours

The total hours of work provided by employees or workers within a specific timeframe.