Peregrine Corporation Acquired an 80% Interest in Serine Corporation in 2011

question 14

Multiple Choice

Peregrine Corporation acquired an 80% interest in Serine Corporation in 2011 at a time when Serine's book values and fair values were equal to one another.On January 1,2014,Serine sold a truck with a $55,000 book value to Peregrine for $100,000.Peregrine is depreciating the truck over 10 years using the straight-line method.The truck has no salvage value.Separate incomes for Peregrine and Serine for 2014 were as follows:
Peregrine's investment income from Serine for 2014 was

• A)$108,000.
• B)$144,000.
• C)$147,600.
• D)$180,000.

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