Femur Co Acquired 70% of the Voting Common Stock of Harbor

question 105

Multiple Choice

Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2010. During 2010, Harbor had revenues of $2,500,000 and expenses of $2,000,000. The amortization of excess cost allocations totaled $60,000 in 2010. What is the effect of including Harbor in consolidated net income for 2010?

• A) $350,000.
• B) $308,000.
• C) $500,000.
• D) $440,000.
• E) $290,000.

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