Kennedy's Share of Hastie's Net Income for 2018 Would Be

question 40

Multiple Choice

Kennedy's share of Hastie's net income for 2018 would be

• A) $18,000.
• B) $15,000.
• C) $18,200.
• D) $16,000.
• E) $18,500.

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Definitions:

Consolidated Retained Earnings

Represents the cumulative amount of net income earned by a parent company and its subsidiaries over time, after dividends are paid to shareholders, consolidated to a single figure.

Consolidated Statement

A financial statement that aggregates the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries to reflect the total financial position and results of the group.

Financial Position

An entity's economic state, represented by its assets, liabilities, and equity at a given point in time.

Acquisition Differential

The gap between what is paid for an acquisition and the fair value of the clearly identified assets acquired.