On January 2, 20X2, Kentucky Company Acquired 70% of Bluegrass

question 46

Multiple Choice

On January 2, 20X2, Kentucky Company acquired 70% of Bluegrass Corporation's common stock for $420,000 cash. At the acquisition date, the book values and fair values of Bluegrass' assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 30% of the total book value of Bluegrass. The stockholders' equity accounts of the two companies at the acquisition date are as follows:
Noncontrolling interest was assigned income of $15,000 in Kentucky's consolidated income statement for 20X2.
-Based on the preceding information,what will be the amount of net income reported by Bluegrass Corporation in 20X2?

• A) $45,000
• B) $50,000
• C) $75,000
• D) $105,000

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Definitions:

Anthropocentric

A viewpoint that regards humans as the central and most significant entities in the universe, often evaluating other beings in terms of their utility for humans.

Biocentric

An ethical viewpoint that emphasizes the intrinsic value of all living things, not just humans.

Ecofeminist

An advocate of the movement that sees a connection between the exploitation and degradation of the natural world and the subordination of women.

Patriarchal

A social system or government where men hold the power and women are largely excluded from it.