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

question 87

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.

---

Definitions:

Flying Machine

A term often used historically to refer to any apparatus capable of flight, including airplanes, helicopters, and other aircraft.

Safety Record

A documented history or log of safety incidents, accidents, and compliance, critical for assessing an entity's performance in maintaining safety standards.

Helicopter

A type of aircraft that can take off and land vertically, as well as hover and move forward, backward, and laterally through the air, thanks to its rotating blades.

Predicate

In grammar, the part of a sentence or clause containing a verb that states something about the subject. In logic, the property or characteristic affirmed or denied about the subject of a statement.