Pied Imperial Corporation Acquired a 90% Interest in Somest Corporation

question 4

Multiple Choice

Pied Imperial Corporation acquired a 90% interest in Somest Corporation in 2012 when Somest's book values were equivalent to fair values.Somest sold equipment with a book value of $80,000 to Pied for $130,000 on January 1,2014.Pied is fully depreciating the equipment over a 4-year period by using the straight-line method.Somest reported net income for 2014 was $320,000.Pied's 2014 income from Somest was

• A)$249,250.
• B)$250,500.
• C)$254,250.
• D)$288,000.

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