Denber Co Acquired 60% of the Common Stock of Kailey Corp

question 34

Multiple Choice

Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2014. For 2014, Kailey reported revenues of $810,000 and expenses of $630,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000.
What is the effect of including Kailey in consolidated net income for 2014?

• A) $31,000.
• B) $33,000.
• C) $55,000.
• D) $60,000.
• E) $39,000.

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