Small-Town Retail Owns 70 Percent of Supplier Corporation's Common Stock

question 31

Multiple Choice

Small-Town Retail owns 70 percent of Supplier Corporation's common stock. For the current financial year, Small-Town and Supplier reported sales of $450,000 and $300,000 and expenses of $290,000 and $240,000, respectively.
-Based on the preceding information,what is the amount of net income to be reported in the consolidated income statement for the year under the parent company theory approach?

• A) $220,000
• B) $202,000
• C) $160,000
• D) $200,000

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