The Following Information Pertains to Questions

question 16

Multiple Choice

The following information pertains to questions
The following information pertains to the shareholdings of an affiliated group of companies.The respective ownership interest of each company is outlined below.
A Inc.:
A Inc.owns 75% of J Inc.and 60% of G Inc.
J Inc.:
J Inc.owns 60% of D Inc.and 20% of G Inc.
G Inc.:
G Inc.owns 10% of J Inc.and 80% of Y Inc.
All intercompany investments are accounted for using the equity method.
The Net Incomes for these companies for the year ended December 31,2009 were as follows: Unrealized intercompany profits earned by the various companies for the year ended December 31,2009 are shown below: All companies are subject to a 25% tax rate.
-What is the net Income for the combined entity?

• A)$2,170,000
• B)$660,000
• C)$1,510,000
• D)$1,773,625

---

Definitions:

Bloodshed

The killing or wounding of people, typically on a large scale during conflicts or violence.

Religious Fervour

Intense and passionate devotion or zeal towards one's religion.

Collective Action

The efforts of a group of people working together towards a common goal, often in pursuit of social, political, or environmental change.

Sacred And The Profane

A concept distinguishing between what is considered holy, divine, or spiritually significant and what is not regarded as sacred in religious context.