P Corporation Acquired an 80% Interest in S Corporation Two

question 28

Multiple Choice

P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S. On January 2, 2017, S sold equipment with a five-year remaining life to P for a gain of $180,000. S reports net income of $900,000 for 2017 and pays dividends of $300,000. P's Equity from Subsidiary Income for 2017 is:

• A) $720,000.
• B) $576,000.
• C) $604,800.
• D) $864,000

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Definitions:

Influencing Others

Influencing others involves affecting the behavior, attitudes, or perceptions of others through various means, whether direct or indirect.

Personal Goals

Individual objectives or aspirations that one aims to achieve, which can be personal, professional, or educational.

Authoritarianism

A tendency to adhere rigidly to conventional values and to obey recognized authority.

Machiavellianism

A personality trait that involves manipulation and exploitation of others, a cynical disregard for morality, and a focus on self-interest and deception.