14) On October 1, 2012, Peacock Inc. acquired 80% of the outstanding common stock of Shade Co. for $480,000. Both the book value and the fair market value of the subsidiary's net assets on that date were equal to $600,000. During 2012 Shade reports revenue of $125,000 and expenses of $50,000, both of which occur evenly throughout the year. On a consolidated income statement for the year ended December 31, 2012, what should be reported as the non-controlling interest in Shade's net income and as pre-acquisition income? Select one: O a. $56,250 and $18,750 O b. $15,000 and $11,250 O c. $56,250 and $3,750 Od. $15,000 and $5,000

14) On October 1, 2012, Peacock Inc. acquired 80% of the outstanding common stock of Shade Co. for $480,000. Both the book value and the fair market value of the subsidiary's net assets on that date were equal to $600,000. During 2012 Shade reports revenue of $125,000 and expenses of $50,000, both of which occur evenly throughout the year. On a consolidated income statement for the year ended December 31, 2012, what should be reported as the non-controlling interest in Shade's net income and as pre-acquisition income? Select one: O a. $56,250 and $18,750 O b. $15,000 and $11,250 O c. $56,250 and $3,750 Od. $15,000 and $5,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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