Dalton Corp

question 55

Multiple Choice

Dalton Corp. owned 70% of the outstanding common stock of Shrugs Inc. On January 1, 2009, Dalton acquired a building with a ten-year life for $420,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 2011, Dalton sold this building to Shrugs for $392,000. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2011, how does this transfer affect the calculation of Dalton's share of consolidated net income?

• A) Consolidated net income must be reduced by $44,800.
• B) Consolidated net income must be reduced by $50,400.
• C) Consolidated net income must be reduced by $49,000.
• D) Consolidated net income must be reduced by $56,000.
• E) Consolidated net income must be reduced by $34,300.

Understand the intention and impact of treaties, acts, and policies on Native Americans and immigrants.

Appreciate the demographic and economic transformation of the West into an urban region.

Understand the significance of labor and trade, including the role of Chinese laborers and the impact of job distribution among them.

Identify the impacts of legislature and innovations on settlement patterns, notably the Homestead Act.

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Definitions:

Acid-Test Ratio

The Acid-Test Ratio, also known as the quick ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets.