Mutually Held Stock (Requiring Simultaneous equations for solution) Based on E9-11: Pin, Inc., owns 80 percent
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Mutually Held Stock (Requiring Simultaneous equations for solution) à Based on E9-11:
Pin, Inc., owns 80 percent of the capital stock of Son Company and 70 percent of the capital stock of Tin, Inc. Son owns 15 percent of the capital stock of Tin. Tin owns 25 percent of the capital stock of Pin. These ownership interrelationships are illustrated in the following diagram:
Income before adjusting for interests in intercompany income for each corporation follows:
Pin | $76,000 |
Son | $68,000 |
Tin | $92,000 |
Required: Compute Pin’s Income on a consolidated basis:
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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