Diamond Company owns 80 percent of Emerald and Emerald owns 90 percent of Sapphire, Inc. Separate operating

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Diamond Company owns 80 percent of Emerald and Emerald owns 90 percent of Sapphire, Inc. Separate operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Sapphire's income is a $50,000 unrealized gaining on intra-entity transfers to Emerald?
Diamond Company owns 80 percent of Emerald and Emerald owns

What is Diamond's accrual-based net income for the year?
a. $658,400 .
b. $674,400 .
c. $666,800 .
d. $645,600 .

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Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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