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

question 18

Multiple Choice

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

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

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Definitions:

Basal Metabolic Rate

The pace at which energy is consumed by the body in a resting state to support crucial processes such as respiration and maintaining body heat.

Energy Expenditure

The total amount of energy used by the body, encompassing basal metabolic rate, physical activity, and energy used in digestion and absorption of food.

Anorexia

An eating disorder characterized by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight.

High-Achieving

Describes individuals who consistently perform at a level significantly above the standard expectation in one or multiple areas.