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

question 79

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.
-What is the amount of net income to the controlling interest for 2010?

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

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Definitions:

Rule Of Requirements

A principle in contract law that dictates a seller must supply only the quantity of goods that a buyer requires, no less and no more.

Triple

Multiplication by three or having three parts; in some contexts, it may refer to a rating, niveau, or layer that is three times stronger, higher, or more intense.

Supply

The total amount of a product or service available for purchase at any given time.

Statute Of Frauds

A rule of law that mandates specific kinds of agreements must be documented and signed to have legal force.