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REFERENCE: Ref.03_01 On January 1,2009,Cale Corp.paid $1,020,000 to Acquire Kaltop Co.Kaltop Maintained

question 103

Multiple Choice

REFERENCE: Ref.03_01
On January 1,2009,Cale Corp.paid $1,020,000 to acquire Kaltop Co.Kaltop maintained separate incorporation.Cale used the equity method to account for the investment.The following information is available for Kaltop's assets,liabilities,and stockholders' equity accounts:
SHAPE \* MERGEFORMAT
$REFERENCE: Ref.03_01 On January 1,2009,Cale Corp.paid $1,020,000 to acquire Kaltop Co.Kaltop maintained separate incorporation.Cale used the equity method to account for the investment.The following information is available for Kaltop's assets,liabilities,and stockholders' equity accounts: SHAPE \* MERGEFORMAT Kaltop earned net income for 2009 of $126,000 and paid dividends of $48,000 during the year. -In Cale's accounting records,what amount would appear on December 31,2009 for equity in subsidiary earnings? A) $79,000. B) $129,800. C) $126,000. D) $127,000. E) $81,800.$ Kaltop earned net income for 2009 of $126,000 and paid dividends of $48,000 during the year.
-In Cale's accounting records,what amount would appear on December 31,2009 for equity in subsidiary earnings?

Definitions:

Operating Agreement

A contract among members of a Limited Liability Company (LLC) outlining the business's financial and functional decisions, including rules, regulations, and provisions.

Incorporators

The people who actually sign the articles of incorporation to start a corporation.

Permission to Incorporate

Official authorization or approval granted to establish a corporation or legal entity.

Corporate Capitalist State

A socioeconomic system where corporate entities and economic elites have significant influence over state policies and governance, often leading to a fusion of corporate and state power.