REFERENCE: Ref.07_08 Tower Company Owns 85% of Hill Company.The Two Companies Engaged

question 55

Multiple Choice

REFERENCE: Ref.07_08
Tower Company owns 85% of Hill Company.The two companies engaged in several intercompany transactions.Each company's operating and dividend income for the current time period follow,as well as the effects of unrealized gains.No income tax accruals have been recognized within these totals.The tax rate for each company is 30%.
-How much income will be reported on the consolidated income statement before deducting noncontrolling interest?

• A)$280,000.
• B)$245,000.
• C)$200,000.
• D)$255,200.
• E)$290,200.

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