Tollway Corporation purchased 75 percent of the common stock of Stem Corporation on January 1, 20X8, for \(\$ 435,000\). At that date, Stem reported common stock outstanding of \(\$ 300,000\) and retained earnings of \(\$ 200,000\). The purchase differential is assigned to other intangible assets and amortized over 10 years. Tollway and Stem reported the following data for 20X8 and 20X9.

\section*{Required}

a. Compute consolidated net income for 20X8 and 20X9 .

b. Compute consolidated comprehensive income for 20X8 and 20X9.

c. Assuming Tollway Corporation reported capital stock outstanding of \(\$ 320,000\) and retained earnings of \(\$ 430,000\) at January 1, 20X8, prepare the stockholders' equity section of the consolidated balance sheet at December 31, 20X8 and 20X9.

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Stem Corporation Net Comprehensive Dividends Operating Year Income Income Paid Income Tollway Corporation Dividends Paid 20X8 $40,000 $50,000 $15,000 $120,000 $70,000 20X9 60.000 65,000 30,000 140,000 70,000