Use the Following Information to Answer the Question(s) Below

question 29

Multiple Choice

Use the following information to answer the question(s) below.

On January 1, 2014, Pamplin Corporation's stockholders' equity consisted of $1,000,000 of $10 par value Common Stock, $750,000 of Additional Paid-in Capital, and $3,000,000 of Retained Earnings. On January 1, 2014, Pamplin purchased 90% of the outstanding common stock of Sage Corporation for $1,500,000 with all excess purchase cost assigned to goodwill. The stockholders' equity of Sage on this date consisted of $800,000 of $100 par value, 8% cumulative, preferred stock callable at $105, $900,000 of $10 par value common stock and $500,000 of Retained Earnings. Sage's net income for 2014 was $100,000.

On January 1, 2014, no preferred dividends are in arrears. No dividends are declared or paid in 2014. In a separate transaction on January 1, 2014, Pamplin purchased 70% of Sage's preferred stock for $600,000.

-For the year ending December 31,2014,the amount of Pamplin's income from Sage (associated with the common stock investment in Sage) is

• A)$32,400.
• B)$36,000.
• C)$60,000.
• D)$90,000.

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Definitions:

Reproductive Freedom

The right to make informed decisions about one's own reproductive health and options, including access to contraception, abortion, and fertility treatments, free from discrimination or coercion.

Financial Considerations

Refers to the financial aspects and implications that need to be taken into account during the decision-making process in various contexts, such as personal finance, business investments, or budget planning.

Overpopulation

A condition where the number of individuals exceeds the carrying capacity of their environment, leading to potential environmental and resource depletion problems.

Women-Headed Households

Families in which the primary caregiver and breadwinner is a woman.