To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter Test Bank INDIRECT AND MUTUAL HOLDINGS Multiple Choice Questions LO1 Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc Which of the following is correct? a Bajo should not be consolidated because minority interests hold 52% b Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure c Pallet has 8% indirect ownership of Bajo d Pallet has 80% indirect ownership of Bajo LO1 Page Corporation acquired a 60% interest in Ace Corporation at a price $40,000 in excess of book value and fair value on January 1, 2005 On the same date, Ace acquired a 70% interest in Bader Corporation at a price $30,000 in excess of book value and fair value The excess purchase cost paid by Page and Ace was attributed to goodwill Separate incomes (excluding investment income) for the three affiliates for 2005 are as follows: Page, $500,000, Ace, $300,000, and Bader, $400,000 Page’s net income for 2005 is a b c d $808,000 $848,000 $920,000 $960,000 Use the following information in answering questions 3, 4, and Paint Corporation owns 82% of Achille corporation and Achille Corporation owns 80% of Badrack Corporation For the current year, the separate incomes of Paint, Achille, and Badrack are $120,000, $100,000, and $50,000, respectively ©2009 Pearson Education, Inc publishing as Prentice Hall 9-1 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Noncontrolling interest expense from Badrack is a b c d LO1 Noncontrolling interest from Achille is a b c d LO1 $18,000 $25,200 $36,200 $72,000 Consolidated net income for Paint Corporation and Subsidiaries can be determined by the equation: a b c d LO1 $9,000 $10,000 $20,000 $40,000 $234,000 $244,800 $260,000 $270,000 Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation Both interests were acquired at book value equal to fair value During 2005, Alders sells land to Babao at a profit of $12,000 Babao still holds the land at December 31, 2005 Profits and (losses) of the three companies for 2005 are: Pabari Corporation Alders Corporation Babao Corporation $180,000 72,000 (30,000) Consolidated net income and noncontrolling interest (loss), respectively, for 2005 are a $211,200 and ($1,200) b $211,200 and ($3,600) c $213,600 and ($1,200) d $213,600 and ($3,600) ©2009 Pearson Education, Inc publishing as Prentice Hall 9-2 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Pablo Corporation acquired 60% of Abagia Corporation on January 1, 2004, at a cost of $20,000 in excess of book value Also, on July 1, 2004, Pablo acquired 60% of Babin Corporation at book value On January 1, 2005, Abagia acquired a 20% interest in Babin at a cost of $10,000 in excess of book value The excess purchase costs paid by Pablo and Abagia were attributed to goodwill On July 1, 2005, Pablo sold land with a book value of $20,000 to Abagia for $40,000 The $20,000 unrealized gain is included in Pablo’s separate income Separate incomes for the affiliated companies (excluding investment income) for 2005 are: Pablo Abagia Babin $250,000 70,000 100,000 Consolidated net income for the three affiliates is a b c d $304,000 $324,000 $344,000 $364,000 Use the following information for Questions 8, and Paisley Corporation owns 90% of Ackers Company Akers Company owns 60% of Baglin Paisley’s separate income for the current year is $540,000 Akers’s separate income is $240,000 Baglin’s separate income is $150,000 LO1 The formula for the consolidated noncontrolling interest is calculated as a 10% X $240,000 b (10% X $240,000) + (6% X $150,000) c (10% X $240,000) + (40% X $150,000) d (10% X $240,000) + (46% X $150,000) LO1 The formula for consolidated net income is calculated as a b c d $930,000 – ($240,000 X 10%) $930,000 – ($240,000 X 10%) – ($150,000 X 40%) $930,000 – ($240,000 X 10%) – ($150,000 X 46%) $930,000 – ($240,000 X 10%) – ($150,000 X 40%) – ($150,000 X 10% X 50%) ©2009 Pearson Education, Inc publishing as Prentice Hall 9-3 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 10 Paglia Corporation owns 80% of Aburn Corporation and has separate income of $200,000 for 2005 Aburn Corporation has separate income of $100,000 and owns 70% of the outstanding stock of Badley Corporation Badley Corporation has separate income of $80,000 The correct amount of consolidated net income is a b c d $324,800 $328,800 $344,800 $344,800 Use the following information for Questions 11, 12, and 13 Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation Abaza Corporation owns 20% of Babon Corporation Pace’s investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value Pace’s purchase of Babon was made in one transaction at a price $30,000 above book value Abaza’s investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value The purchase price differential for all three investments was attributable to goodwill Pace’s separate income for the current year is $100,000 Abaza’s separate income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace Babon’s separate income is $150,000 LO1 11 The amount of consolidated net income for Pace Corporation and Abaza for the current year is a b c d LO1 12 The amount of noncontrolling interest expense for the current year is a b c d LO1 13 $341,000 $348,400 $351,000 $355,000 $69,000 $85,000 $95,000 $99,000 The amount of goodwill in Pace’s consolidated balance sheet is a b c d $50,000 $52,000 $58,000 $60,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-4 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Use the following information for Questions 14 through 18 Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi’s book value The excess purchase price was attributable to goodwill Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value The separate incomes of Pahm, Abussi, and Badock for the year are $200,000, $240,000, and $260,000, respectively LO1 14 Consolidated net income for the current year is a b c d LO1 15 The amount of income for the current year assigned to the minority shareholders of Badock Corporation is a b c d LO1 16 $48,000 $53,200 $74,000 $79,200 The amount of income assigned to the noncontrolling interest in the current year’s consolidated income statement is a b c d LO1 18 $100,000 $104,000 $120,000 $140,000 The amount of income for the current year assigned to the minority shareholders of Abussi Corporation is a b c d LO1 17 $504,800 $516,200 $545,200 $557,200 $142,800 $154,800 $183,200 $195,200 The net income recorded on the books of Pahm Corporation for the current year is a b c d $504,800 $516,800 $545,200 $557,200 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-5 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Use the following information for Questions 19 and 20 Paiva Corporation owns 80% of Ackroyd Corporation’s outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation The separate incomes for the three affiliated companies for the year ended December 31, 2005 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000 Notations for P = Income of A = Income of B = Income of LO2 19 The equation, in a set of simultaneous equations, that computes Paiva Corporation is a b c d LO2 20 question 19 are: Paiva on a consolidated basis Ackroyd on a consolidated basis Bailey on a consolidated basis P P P P = = = = $50,000 + 8B $30,000 + 2A $100,000 + 2A $100,000 + 8A Ackroyd’s noncontrolling income for 2005 is a b c d interest in the total consolidated $ 7,609 $ 8,044 $15,652 $23,696 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-6 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise Paice Corporation owns 80% of the voting common stock of Accardi Corporation and 60% of the voting common stock of Badger Corporation Accardi owns 20% of the voting common stock of Badger There are no cost-book differentials to consider The separate incomes of these affiliated companies for 2005 are: Paice Accardi Badger $300,000 160,000 120,000 Required: Calculate consolidated Subsidiaries for 2005 net income for Paice Corporation ©2009 Pearson Education, Inc publishing as Prentice Hall 9-7 and To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise Pacini Corporation owns an 80% interest in Abdoo Corporation, acquired on January 1, 2004 for $700,000 when Abdoo’s stockholders’ equity consisted of $600,000 of Capital Stock and $200,000 of Retained Earnings Abdoo Corporation acquired a 60% interest in Bach Corporation on July 1, 2004 for $180,000 when Bach had Capital Stock of $200,000 and Retained Earnings of $50,000 On January 1, 2005, Abdoo acquired a 70% interest in Cabo Corporation for $270,000 when Cabo had Capital Stock of $250,000 and Retained Earnings of $100,000 No change in outstanding stock of any of the affiliated companies has occurred since the investments were made All cost-book differentials are goodwill The stockholders’ equity section of the separate balance sheets of Abdoo, Bach, and Cabo at December 31, 2005 are as follows: Capital Stock Retained Earnings Total stockholders’ equity $ $ Abdoo 600,000 280,000 880,000 $ $ Bach 200,000 140,000 340,000 $ $ Cabo 250,000 130,000 380,000 Required: Compute the amount at which goodwill should be shown in the consolidated balance sheet of Pacini Corporation and Subsidiaries at December 31, 2005 Pacini and Abdoo have applied Determine the balances of the December 31, 2005 the equity method correctly three investment accounts at ©2009 Pearson Education, Inc publishing as Prentice Hall 9-8 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise Paik Corporation owns 80% of Acdol Corporation and 60% of Corporation Acdol Corporation owns 10% of Ben Corporation subsidiary investments were acquired at book value equal to value Separate incomes (excluding investment income) of affiliated companies for 2005 are: Paik: Ben All fair the $600,000 which includes $60,000 unrealized losses on inventory items sold to Ben Acdol: $360,000 Ben: $340,000 which includes $100,000 unrealized profit on land sold to Acdol Required: Determine consolidated net income and noncontrolling interest expense for Paik Corporation and Subsidiaries for 2005 LO1 Exercise Packer Corporation owns 100% of Abel Corporation, Abel Corporation owns 95% of Bacon Corporation and Bacon Corporation owns 80% of Cab Corporation The separate incomes of Packer, Abel, Bacon, and Cab are $300,000, $100,000, $200,000, and $300,000, respectively All of the investments were made at times when the investee’s book values were equal to their fair values Required: Determine the consolidated net income and noncontrolling interest expense for Packer Corporation and Subsidiaries for the current year ©2009 Pearson Education, Inc publishing as Prentice Hall 9-9 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise On January 1, 2005 Paki Inc bought 75% interest in Adam Corporation At the time of purchase, Adam owned 80% of Baird Company and 10% of Castle Corporation In all acquisitions the book value equals the fair value Separate earnings for the three affiliates for 2005 are as follows: Paki Company Adam Inc Baird Company Castle Company $ Separate Earnings $400,000 (50,000 ) 100,000 225,000 Dividends $150,000 90,000 35,000 80,000 Required: Compute consolidated net income and noncontrolling interest expense for Paki for 2005 LO2 Exercise Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation, and Back Corporation owns 5% of Aber Corporation The separate incomes (excluding investment income), of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively Required: Calculate revised net incomes for Paco, Aber, and Back by including the correct amount of investment income for each company Use the conventional method for your solution ©2009 Pearson Education, Inc publishing as Prentice Hall 9-10 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 Exercise Paine Corporation owns 90% of Achan Corporation, Achan Corporation owns 85% of Badge Corporation, and Badge Corporation owns 5% of Achan Corporation The separate incomes (excluding investment income), of Paine, Achan, and Badge are $400,000, $160,000, and $220,000, respectively Required: Calculate the consolidated net income for Paine Corporation and its subsidiaries, Achan, and Badge Use the treasury stock method for your solution LO2 Exercise Separate earnings and investment percentages for the three affiliates for 2005 are as follows: Separate Earnings Palace Company Acres Inc Bain Corporation $ 450,000 200,000 160,000 Percentage Interest in Acres 80% Percentage Interest in Bain 70% 10% Required: Compute consolidated net income for Palace for 2005 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-11 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 Exercise Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud Corporation, and Bacud Corporation owns 10% of Padhy Corporation The separate incomes (excluding investment income), of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000, respectively Required: Calculate the consolidated net income for Padhy Corporation and its subsidiaries, Abrams and Bacud Use the conventional method for your solution LO2 Exercise 10 Padua Corporation owns 80% of Able Corporation, Able Corporation owns 60% of Baden Corporation, and Baden Corporation owns 10% of Padua Corporation The separate incomes (excluding investment income), of Padua, Able, and Baden are $300,000, $100,000, and $80,000, respectively Required: Calculate the consolidated net income for Padua Corporation and its subsidiaries, Able and Baden Use the treasury stock method for your solution ©2009 Pearson Education, Inc publishing as Prentice Hall 9-12 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com SOLUTIONS Multiple Choice Questions b b Separate incomes $ Allocate 70% of Bader to Ace Allocate 60% of Ace to Page Page’s net income $ Page 500,000 348,000 848,000 Noncontrolling interest expense $ Ace 300,000 280,000 ( 348,000 ) 280,000 ) ( $ 232,000 120,000 $ $ Bader 400,000 b From Badrack: 20 x $50,000 = $ 10,000 $ 25,200 Noncontrolling interest expense: From Badrack: 20 x $50,000 = $ 10,000 From Achille: (.18)x[$100,000 + (.80)x($50,000)] $ 25,200 Total minority income $ 36,200 Combined separate incomes Less: Noncontrolling interest expense Consolidated net income $ b From Achille: (.18)x[$100,000 + (.80)x($50,000)] a ( $ 270,000 36,200 ) 234,800 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-13 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com d Noncontrolling interest net loss: $8,400 + ($12,000) = ($3,600) Separate incomes $ Less: Unrealized profit on land Subtotal $ Allocate Babao’s net loss to Alders ($30,000) x 60% Allocate 80% of Alders income to Pabari Consolidated net income $ Pabari 180,000 $ 180,000 ( $ 12,000 ) 60,000 ( 18,000 ) ( 33,600 ) 33,600 213,600 Noncontrolling interest expense Alders 72,000 $( Babao 30,000 ) $( 30,000 ) 18,000 $ 8,400 $( (12,000 ) $ Abagia 70,000 $ Babin 100,000 20,000 ) 230,000 $ 70,000 $ 100,000 20,000 ( ( 60,000 ) 20,000 ) $ 20,000 c Separate incomes $ Less: Unrealized profit on land ( Separate realized incomes $ Allocate Babin’s income: 60% to Pablo 20% to Abagia Allocate Abagia’s net income $90,000 x 60% Consolidated net income Noncontrolling interest expense d c $ Pablo 250,000 60,000 54,000 ( 54,000 ) $ 36,000 344,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-14 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com 10 a Separate incomes Allocate Badley’s income: 70% to Aburn Subtotal Allocate Aburn’s income: 80% to Paglia Consolidated net income $ Paglia 200,000 $ Aburn 100,000 $ $ $ 200,000 $ 56,000 156,000 ( $ 56,000 ) 24,000 124,800 324,800 ( 124,800 ) $ 24,000 Noncontrolling interest expense 11 $ 32,200 Badley 80,000 c Separate incomes Plus: Unrealized loss on land sale to Pace Separate realized incomes Allocate Babon’s income: 60% to Pace 20% to Abaza Subtotal Allocate Abaza’s net income to Pace $230,000 x 70% Consolidated net income $ Pace 100,000 $ 100,000 $ Abaza 190,000 $ Babon 150,000 $ 10,000 200,000 $ 150,000 90,000 30,000 230,000 190,000 161,000 $ ( ( ( 90,000 ) 30,000 ) 30,000 $ 30,000 161,000 ) 351,000 Noncontrolling interest expense $ 69,000 12 d From Question 11: $69,000 + 30,000 = $99,000 13 d 14 b $200,000 + (80%)x[$240,000 + (60%)x(260,000)] = $516,200 15 b 40% x $260,000 = $104,000 16 d (20% x $240,000) + (20% x $156,000) = $79,200 17 c $79,200 + $104,000 = $183,200 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-15 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Separate incomes Allocate Badock’s income: 60% to Abussi Subtotal Allocate Abussi’s net income to Pahm $396,000 x 80% Consolidated net income $ Pahm 200,000 $ Abussi 240,000 $ Badock 260,000 $ 200,000 $ 156,000 396,000 ( $ 156,000 ) 104,000 316,800 ( 316,800 ) $ 79 ,200 $ 104,000 $ 516,800 Noncontrolling interest expense 18 b 19 d 20 b Pahm’s separate net income consolidated net income is the same as the $ 8,044 P = $100,000 + 8A A = $50,000 + 8B B = $30,000 + 1P Computations: A = $50,000 + x ($30,000 + 1A) A = $50,000 + $24,000 + 08S A = $80,435 (rounded) Noncontrolling interest expense Ackroyd: $80,435 x 10% outside interest ©2009 Pearson Education, Inc publishing as Prentice Hall 9-16 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise Paice Corporation and Subsidiaries Income Allocation Schedule For the year 2005 Separate earnings Allocate Badger’s income: 60% to Paice 20% to Accardi Subtotal Allocate Accardi’s income: 80% to Paice Consolidated net income $ Paice 300,000 $ Accardi 160,000 $ ( ( $ 72,000 ) 24,000 ) 24,000 $ 24,000 72,000 $ 372,000 $ 24,000 184,000 ( 147,200 ) $ 147,200 519,200 Noncontrolling interest expense $ 36,800 Badger 120,000 LO1 Exercise Requirement 1: Pacini’s investment in Abdoo: Goodwill at acquisition $700,000 cost – ($800,000 x 80%) book value $ 60,000 Abdoo’s investment in Bach: Goodwill at acquisition: $180,000 cost – ($250,000 x 60%) book value acquired 30,000 Abdoo’s investment in Cabo: Goodwill at acquisition: $270,000 cost – ($350,000 x 70%) book value acquired Total goodwill on December 31, 2005 25,000 115,000 $ Requirement 2: Investment cost Investors’ share of equity since acquisition: Abdoo: ($80,000 x 80%) Bach: ($90,000 x 60%) Cabo: ($30,000 x 70%) Investment account balance $ Pacini Equity in Abdoo 700,000 Abdoo’s books Equity Equity in Bach in Cabo $ 180,000 $ 270,000 $ 21,000 291,000 64,000 54,000 $ 764,000 $ 234,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-17 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise Separate incomes Plus: Unrealized loss on inventory sales to Ben Less: Unrealized profits on land sold to Acdol Separate realized incomes Allocate Ben: 60% to Paik 10% to Acdol Subtotal Allocate Acdol to Paik Consolidated net income $ Paik 600,000 $ Acdol 360,000 $ Ben 340,000 60,000 ( 660,000 360,000 100,000 ) 240,000 144,000 ( 24,000 ( 384,000 $ 307,200 ) 144,000 ) 24,000 ) 72,000 $ 804,000 307,200 $ 1,111,200 Noncontrolling interest expense $ ( $ 76,800 $ 72,000 LO1 Exercise Separate incomes Allocate Cab’s income: 80% to Bacon Subtotal Allocate Bacon’s income: 95% to Abel Subtotal Allocate Abel’s income: 100 to Packer Consolidated net income Noncontrolling interest Packer $300,000 Abel $100,000 Bacon $200,000 240,000 418,000 518,000 Cab $300,000 (240,000) $440,000 (418,000) 518,000 (518,000) $818,000 $0 $22,000 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-18 $60,000 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO1 Exercise Castle is not consolidated because the ownership percentage is less than 20% and no evidence of control is given Separate incomes Allocate Baird 80% Subtotal Allocate Adam Consolidated net income Paki 400,000 $ $ 400,000 22,500 $ ( Adam (50,000 ) 80,000 30,000 22,500 ) $ 422,500 $ 7,500 $ Minority income Noncontrolling interest in Baird Noncontrolling interest in Adam Noncontrolling interest expense $ $ $ Baird 100,000 (80,000 ) 20,000 20,000 $ $ 20,000 7,500 27,500 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-19 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 Exercise Equations: P = Income of Paco on a consolidated basis A = Income of Aber on a consolidated basis B = Income of Back on a consolidated basis P = $100,000 + 90A A = $ 40,000 + 85B B = $ 55,000 + 05A Computations: A = $40,000 + (.85)x($55,000 + 05A) A = $40,000 + $46,750 + 0425A A = $90,601 B = $55,000 + (.05)x($90,601) B = $59,530 P = $100,000 + (.9)x($90,601) P = $100,000 + $81,541 P = $181,541 LO2 Exercise Equations: P = Income of Paine on a consolidated basis A = Income of Achan on a consolidated basis A = $160,000 + (.85) x ($220,000) A = $160,000 + $187,000 A = $347,000 P = $400,000 + (90/95) x ($347,000) P = $400,000 + $328,737 P = $728,737 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-20 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 Exercise Equations: P = Income of Palace on a consolidated basis A = Income of Acres on a consolidated basis B = Income of Bain on a consolidated basis P = $450,000 + 8A A = $200,000 + 7B B = $160,000 + 1A Computations: A A A P P P = = = = = = $200,000 $200,000 $335,484 $450,000 $450,000 $718,387 + (.7)x($160,000 + 1A) + $112,000 + 07A + (.8)x($335,484) + $268,387 LO2 Exercise Equations: P = Income of Padhy on a consolidated basis A = Income of Abrams on a consolidated basis B = Income of Bacud on a consolidated basis P = $300,000 + 8A A = $100,000 + 6B B = $ 80,000 + 1P Computations: P P P P P = = = = = $300,000 $300,000 $300,000 $380,000 $439,496 + + + + (.8)x($100,000 + 6B) $80,000 + 48B $80,000 + (.48)x($80,000 + 1P) $38,400 + 048P ©2009 Pearson Education, Inc publishing as Prentice Hall 9-21 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com LO2 Exercise 10 Equations: P = Income of Padua on a consolidated basis A = Income of Able on a consolidated basis A = $100,000 + (.6) x ($80,000) A = $100,000 + $48,000 A = $148,000 P = $300,000 + (.8) x ($148,000)] P = $300,000 + $118,400 P = $418,400 ©2009 Pearson Education, Inc publishing as Prentice Hall 9-22 ... the total consolidated $ 7, 609 $ 8,044 $15,652 $23,696 ©2 009 Pearson Education, Inc publishing as Prentice Hall 9-6 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com... ($150,000 X 40%) – ($150,000 X 10% X 50%) ©2 009 Pearson Education, Inc publishing as Prentice Hall 9-3 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com... b c d $50,000 $52,000 $58,000 $60,000 ©2 009 Pearson Education, Inc publishing as Prentice Hall 9-4 To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com