Pappas Company Owns 85 Percent of Sunny Company's Stock and 80

question 23

Multiple Choice

Pappas Company owns 85 percent of Sunny Company's stock and 80 percent of Sibble Company's stock.All acquisitions were made at book value.The fair values of noncontrolling interests at the time of acquisition were equal to the proportionate share of the book values of the companies.The companies file a consolidated tax return each year and in 20X9 paid a total tax of $112,000.Each company is involved in a number of intercompany inventory transfers each period.Information on the companies' activities for 20X9 is as follows:
Pappas Company does not record income tax expense on income from subsidiaries because a consolidated tax return is filed.
-Based on the information provided,what amount of consolidated net income will be reported for the year 20X9?

• A)$168,000
• B)$280,000
• C)$165,000
• D)$250,000

Differentiate between operating and nonoperating activities for a merchandising company.

Identify the characteristics and differences in the accounting cycle for merchandising and service companies.

Understand the structure and character length of ICD-10-CM diagnosis codes.

Identify the main terms and their relevance in coding from medical diagnoses.

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Definitions:

Basic Fiber

Fundamental optical fiber used in telecommunications to transmit data over long distances at high speeds.

Firm's Profitability

A financial metric indicating the degree to which a company generates profit from its operations.

Overall Impact

The total effect or significance of an event, decision, or action on a system, organization, or community.

Increase Competition

A situation where more competitors enter the market, intensifying the competitive environment.