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On the consolidated financial statements for 2017, what amount should have been shown for Equity in Subsidiary Earnings?

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A) $432,000.

B) $    -0-

C) $408,000.

D) $120,000.

E) $288,000.

Answer: B

Learning Objective: 03-03

Learning Objective: 03-04 

Topic: Consolidation balances―Calculate

Topic: Consolidation balances―Understand by any method

Difficulty: 2 Medium

Blooms: Apply

AACSB: Knowledge Application

AICPA BB: Critical Thinking

AICPA FN: Measurement

Feedback: $0; (Income is eliminated from the investment account)

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Consolidated Financial Statements and Outside Ownership