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

question 20

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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Definitions:

Synaptic Cleft

The small gap at a synapse between two neurons, where neurotransmitters are released to transmit signals from one neuron to another.

Chloride Ions

Negatively charged ions (Cl-) that play key roles in bodily functions such as maintaining fluid balance and transmitting nerve impulses.

Prolactin

A hormone produced by the pituitary gland involved in milk production, reproductive functions, and immune system regulation.

Gray Matter

The grayish neurons and neural segments that are involved in spinal reflexes.