Arryn, Inc., owns 95 percent of Stark Corporation's voting stock. The acquisition price exceeded book and fair

Question:

Arryn, Inc., owns 95 percent of Stark Corporation's voting stock. The acquisition price exceeded book and fair value by $85,500 which was appropriately attributed to goodwill. Stark holds 15 percent of Arryn's voting stock. The price paid for the shares by Stark equaled 15 percent of the parent's book value and the net fair values of its assets and liabilities.
During the current year, Arryn reported separate operating income of $228,000 and income from Stark of $52,500. At the same time, Stark reported separate operating income of $78,000 and income from Arryn of $18,000.
What is the net income attributable to the non-controlling interest under the treasury stock approach?
a. $4,800 .
b. $2,700 .
c. $24,600.
d. $26,700 .
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...