Page Corporation Acquired a 60% Interest in Ace Corporation at a Price

question 37

Multiple Choice

Page Corporation acquired a 60% interest in Ace Corporation at a price $40,000 in excess of book value and fair value on January 1,2010.On the same date,Ace acquired a 70% interest in Bader Corporation at a price $30,000 in excess of book value and fair value.The excess purchase cost paid by Page and Ace was attributed to goodwill.Separate net incomes (excluding investment income) for the three affiliates for 2010 are as follows: Page,$500,000,Ace,$300,000,and Bader,$400,000. Page's controlling interest share of consolidated net income for 2010 is

• A)$808,000.
• B)$848,000.
• C)$920,000.
• D)$960,000.

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Definitions:

Cardiology

The medical specialty concerned with the diagnosis and treatment of disorders of the heart and circulatory system.

Orthopedic Surgery

A branch of surgery concerned with conditions involving the musculoskeletal system, including injuries and diseases of bones, joints, ligaments, tendons, muscles, and nerves.

Opportunity Cost

The value of the best alternative forgone in making any decision, indicating the real cost of pursuing one option over another.

Sweaters

Knitted garments intended to cover the upper body and arms, providing warmth and comfort.