Pam Corporation owns 60 percent of Sun Corporation and 80 percent of Tim Corporation. Tim owns 20 percent of Sun. Separate income and loss data (not including investment income) for the three affiliates for 2016 are as follows:
Pam $800,000 separate income
Sun $300,000 separate income
Tim ($400,000) separate loss
There are no differentials or unrealized profits to consider in measuring 2016 income.
REQUIRED:
Calculate the controlling share of consolidated net income for 2016.