Alpha Corporation Owns 100 Percent of Beta Company, and Beta

question 78

Multiple Choice

Alpha Corporation owns 100 percent of Beta Company, and Beta owns 80 percent of Gamma, Inc., all of which are domestic corporations. Information for the three companies for the year ending December 31, 2011 follows: What is Alpha's accrual-based income for 2011?

• A) $564,000.
• B) $564,800.
• C) $572,200.
• D) $580,000.
• E) $600,000.

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Definitions:

Breakthroughs

Significant discoveries or achievements that facilitate major progress in a particular field.

Innovators

Early adopters of new technologies, trends, or products, who are often key to initiating the spread or acceptance of innovations within a larger population.

Late Adopters

Individuals or groups who purchase or try new products or adopt new technologies later than the majority of consumers.

Early Majority

A segment of consumers in the diffusion of innovation theory who adopt new products or services after a careful review once they have been proven by early adopters.