Beagle Co Owned 80% of Maroon Corp

question 35

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 Maroon Corp. is calculated to be

• A) $481,600.
• B) $472,700.
• C) $488,900.
• D) $502,300.
• E) $358,800.

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Definitions:

Annually

Relating to something that happens once a year.

Variable Costs

Costs that vary directly with the level of production or sales volume; they rise as production increases and fall as production decreases.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain scale.

Net Working Capital

A liquidity calculation that represents the difference between a business's current assets less its current liabilities, highlighting operational efficiency and short-term financial health.