Beagle Co Owned 80% of Maroon Corp

question 37

Multiple Choice

Beagle Co. owned 80% of Maroon Corp. Maroon owned 90% of Eckston Inc. Operating income totals for 2011 are shown below; these figures contained no investment income. Amortization expense was not required by any of these acquisitions. Included in Eckston's operating income was a $56,000 unrealized gain on intra-entity transfers to Maroon.
-The accrual-based income of Eckston Inc. is calculated to be

• A) $234,000.
• B) $211,000.
• C) $221,000.
• D) $224,000.
• E) $246,000.

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