Pigeon Corporation Acquired an 80% Interest in Statue Company on January

question 3

Multiple Choice

Pigeon Corporation acquired an 80% interest in Statue Company on January 1,2014,for $90,000 cash when Statue had Capital Stock of $60,000 and Retained Earnings of $40,000.The fair value/book value differential of $12,500 was attributable to equipment with a 10-year (straight-line) life.Statue suffered a $10,000 net loss in 2014 and paid no dividends.At year-end 2014,Statue owed Pigeon $18,000 on account.Pigeon's separate income for 2011 was $150,000.Controlling interest share of consolidated net income for 2014 was

• A)$140,000.
• B)$141,000.
• C)$142,000.
• D)$150,000.

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Definitions:

Erythrocytes

Red blood cells responsible for carrying oxygen throughout the body.

Collection tube

A container used in medical and research settings for the collection and storage of samples, such as blood or urine.

No additive

Products or substances without any additional ingredients or chemicals added to the original composition.

Lavender

A fragrant plant with purple flowers, used in making perfumes and in aromatherapy.