REFERENCE: Ref.07_06 Chase Company Owns 80% of Lawrence Company and 40% of 40

question 15

Multiple Choice

REFERENCE: Ref.07_06
Chase Company owns 80% of Lawrence Company and 40% of Ross Company.Lawrence Company also owns 30% of Ross Company.Separate operating incomes for 2009 of Chase,Lawrence,and Ross are $450,000,$300,000,and $250,000,respectively.Each company also retains a $20,000 unrealized gain in their current income figures.Annual amortization expense of $15,000 is assigned to Chase's investment in Lawrence and another $15,000 is assigned to Lawrence's investment in Ross.
-Compute Lawrence's accrual-based income for 2009.

• A)$354,000.
• B)$329,500.
• C)$334,000.
• D)$265,000.
• E)$344,500.

---

Definitions:

Pigment Complex

A group of pigment molecules that function together to absorb light, commonly found in photosynthetic organisms.

Radio Waves

Electromagnetic waves with longer wavelengths than infrared light, commonly used in communication systems.

Visible Light

The portion of the electromagnetic spectrum that is visible to the human eye, typically wavelengths from 380 to 750 nanometers.

Plant Growth

is the process of increase in size, number of cells, weight, or volume in plants, often influenced by environmental factors.