E 9-11

[Based on AICPA] Mutually held parent-company stock Pin, Inc., owns 80 percent of the capital stock of Son Company and 70 percent of the capital stock of Tin, Inc. Son owns 15 percent of the capital stock of Tin. Tin owns 25 percent of the capital stock of Pin. These ownership interrelationships are illustrated in the following diagram:

Pin 80%

15%

25% 70%

Son Tin Income before adjusting for interests in intercompany income for each corporation follows:

Pin, Inc. $190,000 Son Company $170,000 Tin, Inc. $230,000