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

question 43

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 Chase's accrual-based income for 2009.

• A)$746,000.
• B)$719,000.
• C)$779,600.
• D)$774,200.
• E)$758,100.

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Definitions:

Test Statistic

A type of statistic used in hypothesis testing, calculated from sample data, to determine the p-value or test the null hypothesis.

T Value

A statistic that is derived from a t-test and is used to determine if there is a significant difference between the means of two groups.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to the calculation of a statistic.

Effect Size

A quantitative measure of the magnitude of the difference between groups or the strength of a relationship between variables.