[Tina82]

Becker Question –

Can anyone help me with this? It’s from the 2012 version. The question asks for consolidated net income (wholly owned sub) but gives an answer for the equity method. Am I missing something?

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[musicamor]

Can you post the exact question? Obviously, use of the equity method precludes one from consolidation; however, if it's a trick question, then you would apply the equity method to determine “combined” net income.

Texas CPA - licensed in 2012!!!

[Tina82]

Doesn't copy in right and it's super long. Any chance I can email you? Basically I don't understand why they would even say that consolidated net income is the same as parent's net income when the equity method is used (point being that the sub is wholly owned so you have to use acquisition method). I might be missing something simple.

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[musicamor]

Sure: musicamor02@msn.com

Texas CPA - licensed in 2012!!!

[Author]

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