Denber Co Acquired 60% of the Common Stock of Kailey Corp

question 107

Multiple Choice

Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2010. For 2010, Kailey reported revenues of $810,000 and expenses of $630,000, all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000.


-Kailey in consolidated net income for 2010?

• A)$31,000.
• B)$33,000.
• C)$55,000.
• D)$60,000.
• E)$39,000.

---

Definitions:

Mammalian

Pertaining to mammals, a class of warm-blooded animals characterized by the presence of mammary glands, which females use to feed their young.

Vertebrates

Animals with a backbone or spinal column, which includes fish, amphibians, reptiles, birds, and mammals.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the tissues of the body and returns carbon dioxide from the tissues to the lungs.

Antibodies

Proteins produced by the immune system that recognize and bind to specific foreign substances called antigens to neutralize or destroy them.