Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2013, Net income(loss) of the three companies (excluding investment income) for 2013 are: Pabari Corporation Alders Corporation Babao Corporation Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are $211,200 and ($1,200). $180,000 $72,000 $(30,000) $211,200 and ($3,600). $213,600 and ($1,200). O $213,600 and ($3,600).

Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2013, Net income(loss) of the three companies (excluding investment income) for 2013 are: Pabari Corporation Alders Corporation Babao Corporation Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2013 are $211,200 and ($1,200). $180,000 $72,000 $(30,000) $211,200 and ($3,600). $213,600 and ($1,200). O $213,600 and ($3,600).

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 24P

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