Stark Company, a 90% Owned Subsidiary of Parker, Inc

question 56

Multiple Choice

Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2010, 2011, and 2012, respectively. Parker sold the land purchased from Stark in 2010 for $92,000 in 2012. Compute income from Stark reported on Parker's books for 2012.

• A) $204,300.
• B) $202,500.
• C) $193,500.
• D) $191,700.
• E) $198,000.

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Definitions:

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