On January 1, 2013, Musial Corp

question 116

Essay

On January 1, 2013, Musial Corp. sold equipment to Matin Inc. (a wholly-owned subsidiary) for $168,000 in cash. The equipment originally cost $140,000 but had a book value of only $98,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense was calculated using the straight-line method.
Musial earned $308,000 in net income in 2013 (not including any investment income) while Matin reported $126,000. Assume there is no amortization related to the original investment.
Assuming that Musial owned only 90% of Matin, what is consolidated net income for 2013?

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Definitions:

Health Insurance

An insurance policy that covers costs related to medical and surgical treatments for the policyholder.

Family Medical History

A record of the health conditions and treatments within a person's family, used to identify potential health risks.

Neoclassicism

A style of art and architecture that emerged in the late 18th century as part of a general revival of interest in classical cultures. Neoclassical artists adopted themes and styles from ancient Greece and Rome.

Enlightenment

A philosophical movement of the 18th century, emphasizing reason and individualism rather than tradition, and advocating for government, ethics, and science based on rationality.