Mesa, Inc., obtained 80 percent of Butte Corporation on January 1, 2011. Annual amortization of $22,500 is

Question:

Mesa, Inc., obtained 80 percent of Butte on January 1, 2011. Annual amortization of $22,500 is to be recorded on the allocations of Butte's acquisition-date business fair value. On January 1, 2012, Butte acquired 55 percent of Valley Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,000 per year. For 2013, each of the three companies reported the following information accumulated by its separate accounting system. Operating income figures do not include any investment or income.
.................................................. Operating ........................ Dividends
.................................................... Income .............................. Paid
Mesa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000 .......................... $150,000
Butte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,000 ............................... 25,000
Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000 ............................... 30,000
a. What is consolidated net income for 2013?
b. How is consolidated net income distributed to the controlling and non-controlling interests?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...