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:

Coenzymes

Organic non-protein molecules that bind to enzymes and are required for their activity.

Thyroxine

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and nervous system development.

Catabolism

The metabolic process that breaks down molecules into smaller units to release energy.

Phosphorylate

The process of introducing a phosphate group into an organic molecule, often to activate or deactivate proteins and enzymes in cells.