3-22 - E3-22* Reported Income under Alternative Accounting...

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Unformatted text preview: E3-22* Reported Income under Alternative Accounting Theories a. Entity theory: Total revenue ($410,000 + $200,000) Total expenses ($320,000 + $150,000) Consolidated net income [$90,000 + ($50,000 x 1.00)] b. Parent company theory: Total revenue ($410,000 + $200,000) Total expenses ($320,000 + $150,000) Consolidated net income [$90,000 + ($50,000 x .80)] c. Proprietary theory: Total revenue [$410,000 + ($200,000 x .80)] Total expenses [$320,000 + ($150,000 x .80)] Consolidated net income [$90,000 + ($50,000 x .80)] d. Current accounting practice: Total revenue ($410,000 + $200,000) Total expenses ($320,000 + $150,000) Consolidated net income [$90,000 + ($50,000 x .80)] $610,000 470,000 130,000 $570,000 440,000 130,000 $610,000 470,000 130,000 $610,000 470,000 140,000 ...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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