Alpha Corporation Owns 100 Percent of Beta Company, and Beta

question 11

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 Beta's accrual-based income for 2011?

• A) $200,000.
• B) $276,800.
• C) $280,000.
• D) $296,000.
• E) $300,000.

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Definitions:

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Additional Education

Refers to further formal or informal learning undertaken after completing a level of education, to enhance skills or gain new knowledge.

Workforce

The pool of individuals in a country or company eligible for and engaged in employment, including both employees and those seeking employment.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and personal necessities have been paid.