If Errant Used the Equity Method to Account for Its

question 49

Multiple Choice

If Errant used the equity method to account for its investment in Grub and had net income of $160,000 from its own operations (before making any entries to reflect its investment in Grub) , what consolidated net income would Errant report in its consolidated income statement for the year ended December 31, 2018?

• A) $90,000.
• B) $160,000.
• C) $230,000.
• D)$250,000.

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Definitions:

Medical Services

Professional care or treatment provided by doctors and other healthcare professionals.

Search Properties

The attributes or features of a product or service that can be evaluated before purchase, typically through search or research.

Experience Properties

Experience properties describe attributes of a product or service that can only be assessed after purchase and use, such as satisfaction, usability, and the overall experience provided to the consumer.

Expenditure

The total amount of money spent by individuals, organizations, or governments on goods and services within a specific period.