Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly); no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest-foneth of its investment, for $84,000.

If Bird uses a ?beginning-the-year" sale assumption, its gain on sale and income from Brush for 2011 will be

a)

b)

c)

d)

Transcribed Image Text:

Gain on Sale $5,700 Income from Brush $59,400 Gain on Sale $5,700 Income from Brush $62,700 Gain on Sale $9,000 Income from Brush $59,40 Gain on Sale $9,000 Income from Brush $62,70 Gain on Sale $5,700 Income from Brush $59,400 Gain on Sale $5,700 Income from Brush $62,700 Gain on Sale $9,000 Income from Brush $59,40 Gain on Sale $9,000 Income from Brush $62,70

Answer rating: 100% (QA)

Answer C Explanation Selling price is ... View the full answer