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Use the Following Information to Answer the Question(s) Below

Question 12

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Use the following information to answer the question(s) below.
Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000.
-If Bird uses a "beginning-of-the-year" sale assumption, its gain on sale and income from Brush for 2011 will be


A) Use the following information to answer the question(s) below. Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000. -If Bird uses a beginning-of-the-year sale assumption, its gain on sale and income from Brush for 2011 will be A) B) C) D)
B) Use the following information to answer the question(s) below. Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000. -If Bird uses a beginning-of-the-year sale assumption, its gain on sale and income from Brush for 2011 will be A) B) C) D)
C) Use the following information to answer the question(s) below. Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000. -If Bird uses a beginning-of-the-year sale assumption, its gain on sale and income from Brush for 2011 will be A) B) C) D)
D) Use the following information to answer the question(s) below. Bird Corporation purchased an 80% interest in Brush Corporation on July 1, 2010 at its book value, and on January 1, 2011 its Investment in Brush account was $300,000, equal to its book value. Brush's net income for 2011 was $99,000 (earned uniformly) ; no dividends were declared. On March 1, 2011, Bird reduced its interest in Brush by selling a 20% interest, one-fourth of its investment, for $84,000. -If Bird uses a beginning-of-the-year sale assumption, its gain on sale and income from Brush for 2011 will be A) B) C) D)

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