Bassett Company owns 80 percent of Crimson and Crimson owns 90 percent of Damson

Question

Bassett Company owns 80 percent of Crimson and Crimson owns 90 percent of Damson, Inc. Operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Damson

Bassett Company owns 80 percent of Crimson and Crimson owns 90 percent of Damson, Inc. Operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Damson

Explanation / Answer

Bassett's accrual-based income for the year =378,000 +80%*(251,000 ) +80%*90%*(299,000-57000)=

$753,040.

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