Alpha Purchased an 80% Interest in Beta on June 30

question 29

Multiple Choice

Alpha purchased an 80% interest in Beta on June 30, 2016.Both Alpha's and Beta's reporting periods end December 31.Which of the following represents the controlling interest in consolidated net income for 2016?

• A)​100% of Alpha's July 1-December 31 income plus 80% of Beta's July 1-December 31 income
• B)​100% of Alpha's July 1-December 31 income plus 100% of Beta's July 1-December 31 income
• C)​100% of Alpha's January 1-December 31 income plus 80% of Beta's July 1-December 31 income
• D)​100% of Alpha's January 1-December 31 income plus 80% of Beta's January 1-December 31 income

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Definitions:

Marathon

A long-distance running event with an official distance of 42.195 kilometers, typically a race, requiring endurance and stamina.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience.

Accomplishment

The achievement of a goal or the completion of a task, often resulting in a sense of satisfaction.

Inwardly Directed Hostility

Emotional aggression or anger directed towards oneself, which can result from frustration or perceived past failures.