A Corporation Had Net Income of $50,000 in 2018 and $60,000

question 37

Multiple Choice

A Corporation had net income of $50,000 in 2018 and $60,000 in 2019, excluding any income from its investment in B Company. B Company had net income of $30,000 in 2018 and $40,000 in 2019. On January 1, 2019, 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 2018 in its comparative consolidated financial statements at the end of 2019?

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

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Definitions:

Distribution Of The Data

Describes how the values of a dataset are spread or distributed across possible values.

Line Graph

A type of chart used to visualize changes over time by plotting data points connected by straight line segments.

Number Of Customers

Refers to the total count of individual clients or consumers that purchase or engage with a business's products or services.

Stem-and-Leaf Plot

A graphical method used to display quantitative data where each data point is split into a "stem" (the leading digit(s)) and a "leaf" (the last digit).